Foreign Saving Interest

Hi, I arrived the UK in Feb-2022. I am not self-employed. My only income is the saving interest from the UK and from Hong Kong . My questions are: 1. What is the threshold to send a self-assessment return and be taxed for the foreign saving interest if it is not remitted to the UK? 2. How to fill the self-assessment form for the cases of foreign interest £2000 respectively? 3. If the interest I earned in the UK is less than my personal allowance, do I need to declare in the self-assessment just because I have foreign saving interest to declare? 4. The foreign interest is generated from a capital originated from Hong Kong before I became UK resident. If I transfer this capital (excluding the amount of interest I earned after I became UK resident), to the UK, would this capital amount be taxable?

Hi

If you are claiming the remittance basis, you need to complete the tax return as this is claimed via the SA109 residence/remittance page.
You need to declare your UK income and also any foreign income that you remit to the UK.
Further guidance can be found here Paying tax on the remittance basis (Self Assessment helpsheet HS264)

Thank you

Hi Admin, Thank you for your feedback. May I have further clarification please? If I ONLY remit the capital money which the foreign interest was generated from, and leave the interest unremitted in my overseas bank account unremitted, will this remittance of the capital money regard as 'foreign income remitted to the UK’? Do I need to declare this remittance?

Hi Shiawase,
Commonly foreign income and gains are ‘remitted to the UK’ if they (or something deriving from them) are:
brought to, or received in, or used in the UK by you or another relevant person
brought to, or received in, or used in the UK for your benefit or that of another relevant person
used to pay for a service provided in the UK to you or another relevant person
used to pay for a service provided in the UK for your benefit or that of another relevant person
used outside of the UK for a relevant debt in the UK
Thank you. 

Hi Admin, Thank you for your reply again. Here are some further questions : In case I choose the arising basis, will I only be taxed if my UK+foreign income exceeds the person saving allowance? If I choose the arising basis, do I only need to fill SA106? And do I need to declare whehter the income is remitted to the UK or not? Thank you.

Hi Shiawase,
The residence page covers residence, domicile and the remittance basis.
 You would complete the residence page, if you are not resident in the UK, eligible for overseas workday relief, became UK resident during the tax year, claiming split year treatment, have a domicile outside the UK or have foreign income / capital gains and you want to use the remittance basis for the tax year.
If you are tax resident in the UK for the whole tax year and none of the above mentioned reasons apply, then you would not need to complete the residence page.
Thank you. 

Hi Admin, Some more inquiries as below. In the page : https://www.gov.uk/tax-foreign-income/non-domiciled-residents#:~:text=You%20do%20not%20have%20to,is%20less%20than%20%C2%A3100 It states that - 'Tax if you’re non-domiciled You do not pay UK tax on your foreign income or gains if both the following apply: they’re less than £2,000 in the tax year you do not bring them into the UK, for example by transferring them to a UK bank account If this applies to you, you do not need to do anything. ' My questions are : 1. What a bout the case of non-domicile with foreign interest income

Hi Shiawase,

Foreign interest comes under income in relation to this. Further guidance is at Remittance basis 2023 (HS264)

Thank you.


 

Hi Admin, I would like to clarify my question: I am non-domicile, not self-employed and not employed, with foreign saving interest of less than £2,000 in the tax year, with the CAPITAL partially remitted to the UK. If I do NOT claiming remittance basis : Do I need to file a self assessment? Is this foreign income amount taxable? Will the arising basis be applied in this case? Thank you!

Hi,
 

If not claiming the remittance basis, you need to report the interest received as you are taxable on all of your worldwide income. If claiming the remittance basis, it would only be what you remit to the UK. Both scenarios require a tax return  . Thank you.