Skip to main content

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

Posted Fri, 08 Sep 2023 15:21:26 GMT by msirl
Hi, I will use remittance basis. All of my overseas income will NOT be remitted to the UK. In the UK, I only have bank interest income of around £8,000. I don't have any other form of income. As I am using remittance basis, I understand that I do have any personal allowance. I want to confirm whether I am still having the Starting rate for savings (£5,000) and any personal saving allowance (£1000/ £500/ £0)? Or I also lose the personal saving allowance? My own estimation of the tax payable for the interest income is: (£8,000 - £5,000) x 20% = £600 Is that correct? Many thanks!
Posted Mon, 18 Sep 2023 12:24:24 GMT by HMRC Admin 10
If you are resident and domiciled or deemed domiciled in the UK, you are unable to use the remittance basis.  
If you use the remittance basis, you lose your personal allowance and your full amount of interest would be subject to tax, based on the savings rates at Tax on savings interest.  (£8000 - £5000 - £1000 = £2000 @ 20% = £400.00)

You must be signed in to post in this forum.