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Posted Mon, 12 Dec 2022 11:35:00 GMT by Tarun Mahajan
Hi Team, 1. Do I need to declare the savings/income I earned in India before moving to the UK? 2. Can I continue to pay Tax in the UK for income earned in UK and Tax in India for income (saving interest or capital gain) earned from savings in India? 3. If I need to move the savings (taxed in India earned before moving to the UK) to the UK, do I need to pay tax again in the UK on that? Thank you for the assistance.
Posted Mon, 12 Dec 2022 18:47:48 GMT by barby
Hello HMRC officer, I need assistance on tax relief for the self declaration. I am resident in the UK, I currently work for a Swiss company and I am paid a salary from which Swiss taxes are deducted. According to the DTA between the UK and Switzerland I can have tax relief for the taxes paid directly in Switzerland. There I paid taxes for £15K for a gross salary of £56k (I used HMRC conversion rates from CFH to £) and using the FTCRWS it comes out that I do not have to pay anything in the UK. Can you kindly advise on how much tax relief can I claim in my self-assessment? Many thanks
Posted Wed, 14 Dec 2022 12:16:35 GMT by HMRC Admin 17

The foreign tax credit relief that you can claim against tax deducted from a foreign employment, is up to 100% of the tax paid. 

This means that if the tax payable in the UK is more than the tax deducted in Switzerland, you can claim 100% relief. 

If your UK tax liability is less than the tax deducted in Switzerland, you can only claim enough credit to cover your UK liability.

Thank you.
Posted Wed, 14 Dec 2022 12:19:57 GMT by barby
Hi HMRC Admin 17, many thanks for your reply.
Posted Wed, 14 Dec 2022 12:43:11 GMT by HMRC Admin 2

Savings are not taxable.  It is the interest that savings generate that is treated as income and is taxable.  

You will need to review the guidance at RDR1 below, to determine your residence status for the tax year in which you arrived in the UK.  

Residence, domicile and the remittance basis: RDR1

Where split year treatment applies, you do not need to declare any income arising outside the UK, prior to the date you arrived in the UK.  

If you are resident in the UK, but not domiciled in the UK and you do not bring your savings interest to the UK, then it is not taxable in the UK.  

If you are resident in the UK and domiciled in the UK or deemed domiciled in the UK, then your foreign savings interest is taxable in the UK.

Thank you.

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