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Posted Sun, 03 Sep 2023 10:23:18 GMT by AndrewT
I moved to Australia permanently and qualify for split year with the overseas part from Oct-22 to Apr-23. I continue to earn UK rental income and UK savings interest. I understand DT treaty with Australia limits UK tax on UK savings interest to 10% (article 11). For my 22/23 UK tax return I understand I add my rental income to SA105. Do I add my savings interest to one or both places below: - SA100 - SA109 (box 20 & box 22) and HS304 (question 3(b)) For my 23/24 and future UK tax returns when I am non resident is the process any different? Appreciated your clarity on this issue. Regards, Andrew
Posted Tue, 05 Sep 2023 15:07:59 GMT by HMRC Admin 10
The interest is still UK income so is on the SA100 and should not be on the SA109.
For the following year, it wont be any different as the rental income still needs to be declared.
Posted Wed, 06 Sep 2023 12:32:44 GMT by AndrewT
Thanks for you reply. So for both my split year and subsequent non-resident years I record UK rental income in SA105 and UK savings interest in SA100. I will also use SA109 to declare my split year for 22/23 and declare non-UK resident status for subsequent years. If I do not record UK savings interest in HS304 or SA109 (box 20 & box 22) for any years, does that mean: a) for the overseas part of my split year I pay full UK tax on UK savings interest? The DT treaty agreed rate of 10% will not be observed for UK tax? b) only for subsequent years as non-UK resident will the DT treaty agreed rate of 10% will be observed for UK tax? Please confirm if my understanding above is correct. Thanks again, Andrew
Posted Tue, 12 Sep 2023 13:49:00 GMT by HMRC Admin 32

UK rental income and expenses are shown on SA105, regardless of whether you are resident in the UK or not and is not affected by split year treatment. For the year that split year treatment applies, you would only declare the amount of interest that arose while resident in the UK.  
For subsequent tax year where you are not resident, you would declare the interest and tax deducted on the tax return. 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. We are unable to comment on the DT treaty agreed, as we do not know which treaty is involved.

Thank you.

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