Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 20 Apr 2022 11:23:50 GMT by mkcchan
Hello, I have saving interest earned in Australia. There is 10% withholding tax deducted before the bank credit the interest to my account For example: Original interest amount = £100 Tax withheld by the bank and pay direct to Australia Tax Office = £10 Interest payment credited to my bank account = £90 Then, how do I fill out the following sections in SA106 form? Amount of income arising or received before any tax taken off - Should I enter £90? Foreign tax taken off or paid - Should I enter £0? Pls comment. Thank you.
Posted Mon, 25 Apr 2022 09:56:31 GMT by HMRC Admin 19
Hi,

The amount arising before tax is taken off would be the gross figure before any deductions.  Enter the tax witheld in the 'Witholding tax and any tax taken off'' box. Then the taxable anount would be the net amount after deductions from the gross figure.  

You may be entilted to claim Foreign Tax Credit Relief, please check article of the relevant Double Taxation Agreement before completing this section to make sure you are able to claim Foreign Tax Credit Relief as certain types of income are only taxable in the UK. You can find guidance here:

Relief for Foreign Tax Paid 2022 (HS263) Updated 6 April 2022

You can also see SA106 in the link above for notes of foregn interest reveived. 

Thank you.

You must be signed in to post in this forum.