Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 06 Sep 2023 11:43:17 GMT by
Hi, I am a UK citizen living abroad, currently non-UK tax resident. I am considering opening a UK savings account which will be generating less than £2,500 interest/year. What is the likely income tax liability in the UK for this (if any). If so, how do I need to report the savings to HMRC (form number, self assessment etc)? Thank you.
Posted Tue, 12 Sep 2023 12:55:28 GMT by HMRC Admin 32

A non-UK resident person, is taxable on savings and investment income in the UK, which is treated as 'disregarded income'. The effect of this is that the liability of a non UK resident in respect of savings and investment income, is limited to the Income Tax deducted from it, or treated as deducted or paid in respect of it.

To report this income would require the completion of a self assesment tax return, in which you would declare the savings and dividends and that you are not resident in the UK. You should also consider the doublt taxation agreement, if there is one, between the UK and your country of residence.

Collection Tax treaties

Thank you.
Posted Tue, 12 Sep 2023 15:54:02 GMT by
Thank you very much for your response. I have found another thread that said that HMR will be notified by the by the financial institution after the tax year has ended and we would update your records accordingly. Does that mean that a self-assessment is not required if I do not have to submit one for another reason? I have extracted the text of the answer I refer to below: "Posted 6 months ago by HMRC Admin 25 Hi Ferdie, HMRC will be notified by the financial institution after the tax year has ended and we would update your records accordingly. You can contact us by telephone or in writing before this is done. However, you would need to provide the name of the financial institution, account numbers, share of interest and the interest amount." Thank you.
Posted Tue, 19 Sep 2023 14:36:08 GMT by HMRC Admin 17

That is correct.

You will only need to report the figures yourself if you meet the criteria for Self-Assessment.

Thank you.

You must be signed in to post in this forum.