Self assessment for non UK domiciled

Hello, While filing self assessment online it seems that as a non domiciled UK tax resident the interest accrued on interest on savings in foreign bank while less than £2000 and not remitted in UK is also being included in the tax calculation in the calculation step. Since the income (from interest in foreign bank) is less than £2000, the Foreign section has not been filled in and the amount is to be mentioned in the UK interest section of Fill in your return section itself. Is there anything else to be done (may be leave the foreign interest 0 as it is an optional field) or mentioned somewhere since as per my understanding if someone is resident in the UK but having domicile elsewhere and as long as the foreign income is less than £2000 and not being remitted to the UK tax would not be included ? Cheers, Sudy

Hi,

As a resident, who is not domiciled in the UK, you are required, by default, to declare your world-wide income using the 'arising basis'.  
If your overseas interest is less than £2000 and no tax is deducted from it, you can declare the interest in box 3 of SA100, so that it can be included in the tax calculations.  
If you are not remitting the interest to the UK, then you are electing to use the 'remittance basis', which requires the completion of SA109, to claim the remittance basis and declare the unremitted income.  
Have a look at Section 9 of RDR1, regarding the remittance basis.  Exemption for small amounts of foreign income would not apply for overseas interest in excess of £100.00.
Residence, domicile and the remittance basis: RDR1

Thank you

Thanks for the reply and it explains very well. So while filling online self assessment one should mention the amount of interest in foreign banks even if it isn’t unremitted If the overseas interest is more than £100. Following up on the same, the issue that I face is that in the self assessment online form it says as long as it is less than £2000 the amount of interest one can mention in the UK interest section and leave the foreign income section blank (since there is no other foreign income as such). I still haven’t filled the SA109 and now looks like have to fill it if I am to go for remittance basis since it doesn’t apply by default. I have 3 questions related to above: 1. Is that the reason why at the calculation step of online self assessment it gives me a tax bill related to foreign interest because the system doesn’t know that I am filing tax on remittance only basis ? 2. Is it after filing in the SA109 form that tax calculation of foreign interest will become zero in the calculation ? 3. Is it possible to save the calculation as it is and fill the SA109 in paper and send it since I am not sure if there is a way to fill in SA109 online without paying for the third party software ? Thanks in advance !

Hi Sudy1111,
1. That is correct
2. It will.
3. You cannot file online using HMRC software to include the SA109 will need to use 3rd party sotfware. as you need to file the whole return together.
You will need to purchase the software or opt to file the whole return by paper and the deadline for this is 31/10/23.
Thank you. 

As a resident, who is domiciled in the UK, how are we required to declare our overseas interest income of less than £2000 which is not remitted to UK.

Hi Sachin,
The guidance at RDRM31030 advises "Most individuals who are resident in the UK are taxable on the arising basis and pay tax on their worldwide income and gains.
So, on the arising basis, the foreign income of UK residents is charged to tax in the year in which it arises overseas".
RDRM31030 - Remittance Basis: Introduction to the Remittance Basis: Overview of the Remittance Basis regime: What is the Remittance Basis?
A Self Assessment tax return and its supplementary pages are used to declare the world-wide income and tax paid.
The fact that you have foreign interest is criteria for completing a Self Assessment tax return.
You can register for a Self Assessment tax return here:
Check how to register for Self Assessment
Thank you.