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Posted Sat, 21 Jan 2023 21:58:01 GMT by nomadic_user
Non-domiciled-residents don't not need to fill Self Assessment if interest earned is less than £2000. But since I do fill Self Assessment every year , should I declare if interest earned is less than £2000 ? If I declare & enter "Interest income from overseas savings amount " as £2000 , It applies 40% tax rate on it although it was tax free as mentioned above. So what is the right way to deal with this limitation of self assessment HMRC website? Or I should not declare any interest income since it is less than £2000 , will it end up as Tax Fraud?
Posted Tue, 24 Jan 2023 15:32:26 GMT by HMRC Admin 17

Hi,
 
Please see guidance at :

Paying tax on the remittance basis (Self Assessment helpsheet HS264)    .


Thank you.
Posted Sun, 29 Jan 2023 09:57:58 GMT by
I am not going by remittance basis , as I will be completing 7 out of 9 years soon (remittance basis states you need to pay annual charge 30k/year) . Instead using paying on interest gained each year even though not remitting any money back to UK.
Posted Wed, 01 Feb 2023 10:22:13 GMT by HMRC Admin 25
Hi peace_purple123,

Yes, you still need to declare it, as it is foreign income, even if the tax relief available means no tax is paid on it.

Thank you. 
Posted Tue, 09 Jan 2024 19:49:58 GMT by
I am non-domiciled residents of the UK with foreign interest income less than £2,000 in the tax year. As I understand this is not taxed in UK but I need to fill SA online using HMRC SA portal and followed the steps: 1) In Tailor your return Page 1> If you received any foreign income, do you need to complete the foreign section? Selected NO 2) Tailor your return Page 2 > Did you receive any interest, for example, from UK banks, UK building societies, UK unit trusts (or untaxed foreign interest up to £2,000)? Selected YES 3) UK interest >Change UK interest > Untaxed foreign interest (up to £2,000) - amounts which have not had tax taken off. Enter total amount: After puting my foreign interest income of £1600 , I can see this has been added to total income and taxed Why is this happening , I shouldnt be taxed on my £1600 foreign interest ? What should I do?
Posted Tue, 16 Jan 2024 10:50:27 GMT by HMRC Admin 21
Hi londa123,
As non domiciled, please refer to Paying tax on the remittance basis (Self Assessment helpsheet HS264)
Thank you.

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