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Posted Sun, 14 Jan 2024 20:06:20 GMT by zorba 74
I am a UK citizen and domiciled in UK for tax purposes, and hence expect to pay tax in UK on my global income. I might have some overseas income from savings interest+ capital gains, but total will be less than GBP 2000 1. I have a personal savings allowance of GBP 500, If total interest earned (on savings accounts held abroad+ savings account in UK ) is less than the " personal savings allowance" I assume there is no tax to pay on interest. eg if overseas interest is 400, and UK interest is 50= Total 450 GBP. Is this correct? 2. In the above case, where do I input the overseas interest earned ? In the " foreign income section" or along with separate section for " UK bank interest"? 3. Separately I understand that income arising from redemption of overseas " non-reporting" mutual funds should be classified as general income rather than capital gains and will be taxed as such. Where should this be reported / which section? And do I tick " yes" or " no" to the question in Section 1- " If you disposed of any chargeable assets, or had any chargeable gains, or you wish to claim an allowable loss, or make any other claim or election, do I need to complete the Capital Gains section?" - if all these gains were abroad, and not in UK? Many thanks
Posted Wed, 17 Jan 2024 12:46:01 GMT by HMRC Admin 8 Response
Hi,
Yes, the personal savings allowances applies to the total interest from UK and abroad. the foreign interest should be declared on the foreign section of the tax return.
Non reporting funds are treated as 'offshore income gains' and are subject to income tax and not capital gains tax.  
The gains should be entered in box 41 of SA106 and in the box marked "Other overseas income and gains" on the online return.  As it is not a capital
gain. tick no
Thankyou.

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