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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

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 peace_purple123
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. 

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