foreign interest income

Hi, For a non-domiciled UK resident,does the UK tax on foreign income only apply to portion of income over 2,000 GBP? For example if the foreign income is 3,000 GBP, is only the portion above 2,000 GBP which is 1,000 GBP taxable?

Hi,

No.  If the foreign income is taxable in the UK, then it is the full amount for foreign income you declare, along with any foreign tax that had to be paid on that income.

Thank you.

Hi, This income is not brought to UK and already taxed in the foreign country. I see following explanation in the HRMC website but it is not quite clear. So as per below statement do I need to pay tax only for the portion that is above 2000 GBP? Because I see for foreign income below 2000 GBP HRMC states it will not be taxed. Also I will not claim remittance basis since it charges 30k GBP/year after 7 years and it does not make sense to pay this amount for a minor income of 2-3k GBP. HRMC Statement: "You do not pay UK tax on your foreign income or gains if both the following apply: they’re less than £2,000 in the tax year you do not bring them into the UK, for example by transferring them to a UK bank account If this applies to you, you do not need to do anything." Source: https://www.gov.uk/tax-foreign-income/non-domiciled-residents

Hi,
If you are UK resident and domiciled, you are taxed on your worldwide income whether you bring it to the UK or not. The only exception is where the laws of the country actually stop you from removing it.
Thank you.