UK tax on coupon payments from US T-Bonds and Notes

Hi! I am a UK tax resident and have some US Treasury bonds paying "interest" bi-annually. These payments are taxed 15% at source under W8-BEN. Is there any additional tax to pay in the UK or conversely a tax relief (I presume for income tax)? How do I declare these in the self-assessment?

Hi Konstantin,

This is foreign income and meets the criteria for completing a self assessment tax return.  
You would need to register for self assessment, if you have never completed a tax return before.  
You can register for self assessment at Register for Self Assessment.
In the self assessment tax return, you will need to declare your world-wide income.  
Your foreign interest would be declared in SA106 (foreign) where you can claim a credit for the overseas tax paid, along with any other appropriate
supplementary pages, as well as SA100, which is the tax return.
You can download and print off the tax return and supplementary pages at Self Assessment tax return forms.  
If you register for personal tax account (PTA) you can complete your tax return online.  Personal tax account: sign in or set up.

Thank you.

Hi,if I bought the bond paid over the coupon rate, e.g. paid 101 for 100 face value coupon, does it mean it is not dds and the lost upon maturity redemption will be treated as capital gain or lost?

Hi edmund

Please have a look through the guidance on deeply discounted securities at SAIM3010 - Deeply discounted securities: introduction
If you bonds are not DDS, then then it will be a normal capital gain or loss, when you dispose of them.

Thank you