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Posted Sat, 02 Dec 2023 12:54:39 GMT by
I am a UK Resident (domicile) and taxpayer in UK. My father is non-UK resident and taxpayer in India. My father opened a 3-year Fixed Deposit account in India bank in his name 26-Oct-18 to 26-Oct-21 but added my name to the account on 01-Oct-21 before maturity. He is the primary account holder, the interest certificates from the bank account are in his name, he has paid tax locally in India for the interest accrued annually including the final interest at maturity (26-Oct-21). I have not received any of the money in UK. In this case, am I liable to pay any tax for the account in UK as a foreign income? If yes, what would be the income I would have to be taxed on? Would it be just for the year I have been added (interest is accrued yearly) and split 50-50 between us? The account can be pre-maturely withdrawn with a penalty though he did NOT do this. Thanks.
Posted Wed, 06 Dec 2023 08:29:33 GMT by HMRC Admin 25 Response
Hi sa78,
No, the beneficial owner of the interest is your father and he is taxable on this in India.
Your name on the account is perhaps for other reasons.
Thank you. 

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