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Posted Tue, 02 Apr 2024 10:03:37 GMT by Richard Blackburn
I am UK tax resident and domiciled. I sold a house in the US in 2021 and eventually received a repayment of the Federal Withholding Tax in August 2023 that was deducted at the time of sale. In addition to the repayment of US Withholding Tax I received a payment of interest. I now have no nexus to the US and am not a US filer. Is the interest on the refund taxable in the UK ?
Posted Tue, 09 Apr 2024 12:31:46 GMT by HMRC Admin 32
Hi,

The refund is not taxable but you will need to declare the interest. If you were UK resident at the time of the sale of the property and claimed foreign tax credit relief you will need to amend the amount claimed as the tax paid abroad has now been refunded.

Thank you.

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