Self assessment for disclosing interest in bank NRE account in India is less than £2000 ?

Hello, If an individual is employed as PAYE and has salary much less than £100K but has interest coming in bank accounts (NRE and NRO) in India which is less than £2000 with no other income to report then do they need to file a self assessment ? Cheers, Sudy

Hi,

As you are in receipt of foreign interest (regardless of the amount), you meet the criteria for completing a Self Assessment Tax Return. You would need to declare the foreign interest in pounds sterling. Higher rate tax payers can receive the first £500.00 of UK and foreign interest tax free. The remainder is the taxed at the appropriate rate. If you have paid tax in foreign countries on the interest, you can claim a foreign tax credit of up to 100% of the foreign tax deducted. 

Thank you.
 

Thank you for the above info ! I however should have mentioned one other aspect that if the individual is not deemed domicile in the UK (hasn’t been living in the UK for the last 15 years) then would the remittance basis not apply automatically as per which if the foreign income is less than £2000 then the self assessment is not mandatory ? Cheers, Sudy

Hi Sudy1111,

The arising basis is applied automatically, in which world-wide income is taxed.  
Non domiciled UK residents, can elect to use the remittance basis, by completing the relevant section of SA109 or it's online equivalent.  
An exception can be made, provided certain criteria are met.  Have a look at section 9.15 on 'Less than £2,000 unremitted foreign income and gains arising or accruing in the tax year'. 
Guidance note for residence, domicile and the remittance basis: RDR1 Updated 19 July 2018


Thank you.