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Posted Mon, 28 Nov 2022 16:25:14 GMT by Sam Pun
I was in Hong Kong before i come to UK. I have a mortgage loan from bank. At the same time, bank offers an offset benefit for my saving in their bank. I will have my interest rebate to my saving account of the fund in the mortgage link saving account. e.g. Loan is 1M, interest expense of this loan in Jan is 1000. When I have fund in their designated mortgage link saving account. e.g. 0.5M, I will have rebate 500 in Jan back to my saving account. The is so call "interest". I would like to know is this offset mortgage link's interest (500) a source of income I have to report to HMRC while actually this (500) is not an earned income.
Posted Tue, 29 Nov 2022 15:30:52 GMT by HMRC Admin 17

Hi,
 
Whether your interest is taxable in the UK, depends on whether your are resident and domiciled and whether your remit the interest to the UK. 

You will need to look at the residence guidance at, to determine if the interest is taxable in the UK:

Residence, domicile and the remittance basis: RDR1    .

Thank you.
Posted Wed, 30 Nov 2022 12:30:25 GMT by Sam Pun
Dear HMRC When I fill AS106 box 17, from the notes: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1062228/sa106-notes-2022.pdf I know that interest and other finance charges on non-residential properties would be part of amount in box 17. However base on the following: https://www.gov.uk/guidance/changes-to-tax-relief-for-residential-landlords-how-its-worked-out-including-case-studies financial cost should NOT be part of allowable property expenses after 2021, but 20% of it could be a tax credit instead. In a simple logic there should be a box other than box 17 i can fill such a financial cost. Where should I fill the financial cost in SA106? Best Regards 
Posted Fri, 02 Dec 2022 14:06:22 GMT by HMRC Admin 32
Hi,

This should be entered at box 24.1 on page 5 of the SA106.

Thank you.

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