Tax on overseas interest

Hi, I do not normally file a self assessment as all my UK income is PAYE and I have not been asked to do a self assessment. I have some small overseas income for 21/22 which is purely in the form of interest but would fall within my savings allowance of £500. Do I need to do a self assessment as it is likely there would be no tax to be paid on this ? Thanks. Thanks.

Hi,

As it is foreign income a tax return is still required.

Thank you.

Thanks for your response. On the basis that I am UK resident / Non domiciled / Filing on arising basis , could you advise on which section this interest should be filled in , would this be on SA100 TR3? Thanks.

Hi,

If your only foreign income was untaxed foreign interest (of up to £2,000), put the amount (in UK pounds) in box 3 instead of filling in the Foreign pages. 

You must put the name of the country where the interest arose in any other information on page TR 7. If it was more than £2,000, you’ll need to fill in the Foreign pages.

Thank you.

Thank you. On a related but seperate note, could you advise on the following if there was a realises capital gain on overseas investments (unit trusts , funds) (for E.g £500) and a realised capital loss on a seperate investment (for E.g £700) : a) Can the gain and loss be net off ? b) Where should these be reported on the return ? Thank you.

Hi,

As the gain you refer to is below the annual exempt allowance you would not need to declare this. You can notify HMRC of the loss so that they can be used at a later date. You can do this on the Capital Gain section of the tax return or send in a letter to advise. Losses must be notified to HMRC within 4 years of the tax year in which they arise to allow you to use them.

Thank you.