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Posted Wed, 16 Aug 2023 11:14:37 GMT by smil
Hi, I am a dual British/Italian national permanently residing and paying taxes in the UK. I co-own a savings account in Italy with my parents. It's a fixed-rate bond account which will reach maturity in this tax year. Foreign tax will be deduced at maturity. The interests on these savings will exceed my UK tax-free personal savings allowance, however I will not bring my share of money to the UK. Could you kindly let me know if: 1) I need to declare this interests on savings using Self-Assessment (I do not normally return a self-assessment tax return as I am on PAYE). If that is the case, which form/section should I use? 2) I need to pay any taxes even if the money will not be brought to the UK. If so, how do I work out how much I owe? Thank you and best regards.
Posted Thu, 17 Aug 2023 17:13:30 GMT by HMRC Admin 25
Hi smil,
As a UK tax resident you would declare your worldwide income even if it is your choice not to bring the funds to the UK. 
Thank you. 
Posted Fri, 18 Aug 2023 12:49:42 GMT by smil
Dear Admin, thank you for your reply. It would be immensely helpful if you could kindly let me know where in the Self Assessment form I should declare such income, and whether it is taxed in the UK. Many thanks.
Posted Wed, 23 Aug 2023 15:54:18 GMT by HMRC Admin 25
Hi smil,
Interest from an overseas account, where tax has been deducted is shown on SA106 or in the foreign section of the online tax return.
This will allow you to claim up to 100% Foreign Tax Credit Relief (FTCR) for the overseas tax paid on the interest.
Self Assessment: Foreign (SA106)
Thank you. 

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