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Posted Fri, 17 Jun 2022 15:18:05 GMT by rpk16
Hi, I am an international student with no UK income. My country’s double taxation treaty with the UK means that as a student I will not be taxed on foreign income used for the education/living costs. I am going to receive about £3000 in interest from peer-to-peer lending overseas and plan to remit this (along with the principal) to the UK for investment purposes. From the information I have gathered I would have to submit a self assessment to inform HMRC of this income but I would not pay anything on it as it falls within my personal allowance, is this correct? Additionally, would I also have to report the other bank interest that has been used for my education and is therefore not taxable (under the double taxation agreement)? Thank you
Posted Tue, 21 Jun 2022 07:39:56 GMT by HMRC Admin 19

Some double taxation agreements mean that students do not pay income tax in the UK.  You can see guidance here:

Student jobs: paying tax

Tax on foreign income

Thank you.
Posted Tue, 21 Jun 2022 11:37:19 GMT by rpk16
Thank you for your reply, I have a few additional questions. So I would only declare income that falls under these points in a self-assessment ? * have other income that you do not bring to the UK * bring it to the UK and spend it on things other than living costs and course fees Additionally, as I am non domiciled is there somewhere I have to declare I’m choosing to pay tax on the arising basis and not the remittance basis? Thanks
Posted Wed, 22 Jun 2022 08:01:06 GMT by HMRC Admin 17

That is correct. 

You will also need to complete the residence section on SA109 for the non-domicile part .

Thank you.

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