Tax Obligations for Overseas Company and UK Bank Savings Interest

Hello, I have a couple of tax-related questions regarding my family's financial situation. I would appreciate any guidance or information you can provide. 1. My dad has an overseas company based in Hong Kong, and its total year profit is less than £4,000. Does he still need to pay tax in the UK and file a tax return? If so, which specific tax return form should he use? 2. My mom has earned £9,000 in interest from a UK bank savings account. Does she need to pay tax on this interest income, and if so, which tax return form should she fill out? Thank you for your assistance in clarifying these tax matters. Best regards, Michael

Hi,

We presume both your parents are resident in the UK in relation to your questions. We regret that we cannot confirm an answer to question 1. You will need to review Article 7 of the UK / Hong Kong double taxation agreement, which applies to business profits or seek financial advise.

2010 Hong Kong-UK DTA

UK savings income can be declared in writing, where it is not necessary to submit a self assessment tax return.  If your mother need to complete a Self Assessment Tax Return, she would enter the interest in either box 1 or 2 of SA100 (page TR3) depending on whether tax has been deducted from the interest.

Thank you.