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Posted Mon, 01 Jan 2024 12:03:52 GMT by SF Chan
I have interest Income from overseas bank (NON UK) more than 2000 pounds, my understanding is that I have to fill in SA106. May I get your advice? 1. In SA106 Page 2 F2, Income from overseas sources - shall I fill in the income in "Interest and other income from overseas saving" OR "Dividends from foreign companies"? 2. Would the interest income from overseas bank (NON UK) will be subject to tax on savings OR tax on dividend? 3. Are there different tax calculations for interest income from UK bank vs Overseas bank?
Posted Tue, 09 Jan 2024 15:33:03 GMT by HMRC Admin 5 Response
Hi

Box 2 of SA106 page F1, is used to claim a foreign tax credit, of up to 100% of the foreign tax paid (HMRC can work this out for you).  
This is to avoid paying the same tax twice, resulting in double taxation.  Dividends and bank interest have their own tax free threshold and different rates of tax.  
This is why they should be declared separately on page F2 (in pounds sterling only).  
Self assessment will add together UK and foreign interest and work out the appropriate threshold for tax purposes and tax the sum that exceeds this threshold at the appropriate rate.  
The same goes for dividends, although the tax free threshold is fixed at £2000.00.

Thank you

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