Interest on foreign bond investments

Hi, I invested in Italian bonds in February 2023. In July 2023, I received a gross interest of 350 euros on which I paid taxes in Italy (12.50%). In January 2024 I will receive a gross interest of 350 euros on which I will pay taxes in Italy (12.50%). I have not gained any other interests. I would like to know: 1) whether I need to fill in a self-assessment form for the tax year 2022/23; 2) how I can get the taxes back from Italy. Thanks!

Hi
Yes, you will need to submit a self assessment tax return, because you  are in receipt of foreign income.  You would need to declare the interest in the foreign section, so that you can claim a foreign tax credit, for the Italian tax paid.

Thanks. May I know why I need to submit a SA form for the year 2022/23 if the interest was paid in July 23 and January 2023?

Hi,

The interest would be declared in a tax return relating to the tax year that the interest arises. The date you quote would be for a 2023 to 2024 tax return which will become available after 6 April 2024.

Thank you.

Dear Sir, If the bond buying price is higher than face value, how to report the difference when redemption? claim lost or claim relief? Best regards edmund

Hi,

If you complete a Self Assessment tax return, please declare it in the capital gains section and include supporing evidence.  

If you do not compete a tax return, you should claim in writing, including supporting evidence, to:

HMRC,
BX9 1AS

This must be done within 4 years of the end of the tax year in which the loss arises.

Thank you.