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Posted Tue, 31 Oct 2023 06:02:21 GMT by
Hi, I am a non-UK resident with only interest income in UK. I have >£5000 savings interest from the UK bank savings account in the tax year 2022/2023. SAIM1170 advises if I am not resident in the UK, then UK bank interest is considered 'disregarded income' and my income tax liability is limited to the lower of "sum of tax deducted from, or treated as deducted from, or tax credits on ‘disregarded income’, and the tax liability leaving out the disregarded income and with no personal allowances or double taxation relief taken into account". "sum of tax deducted from, or treated as deducted from, or tax credits on ‘disregarded income' " is £0 as banks have been paying interest gross, without income tax deducted. "tax liability leaving out the disregarded income and with no personal allowances or double taxation relief taken into account" is also £0 as I only have interest income in UK. Either calculations suggest that I have no tax liability in the tax year, is my interpretation correct? If yes, do I need to file the tax return/ self-assessment to report my case?
Posted Wed, 01 Nov 2023 16:44:33 GMT by HMRC Admin 20
Hi constancew,
Please refer to Tax on your UK income if you live abroad
Thank you.
Posted Thu, 02 Nov 2023 06:23:29 GMT by
Hi HMRC Admin 20 Thank you for your reply. I appreciate your assistance. I have reviewed the guidelines regarding the submission of a self-assessment tax return, and based on the information provided, I would like to confirm if my understanding is correct. As per the guidelines, a self-assessment tax return should be submitted in the following situations: 1. Renting out property in the UK. 2. Working for oneself in the UK. 3. Having a pension outside the UK and being a UK resident in one of the five previous tax years. 4. Having other untaxed income. In my case, I only have disregarded income (Bank savings interest) in the UK. Does this mean that a self-assessment tax return is not required for my situation? Furthermore, I would appreciate your guidance on whether the method I am using to access the income tax liability is correct. I want to ensure that I am following the correct procedures and fulfilling my tax obligations accurately. Thank you in advance for your kind assistance.
Posted Thu, 02 Nov 2023 16:53:55 GMT by HMRC Admin 25
Hi constancew,
Have a look at the Self Assessment criteria tool at:
https://www.gov.uk/check-if-you-need-tax-return.
If your UK savings and investments income is over £10000.00 in the tax year, then yes, you need to complete at tax return, even if is disregarded income.
You would need to declare your interest on SA100 and that you are not UK resident and claiming personal allowances on SA109, so that your interest is treated as disregarded income.
Thank you. 

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