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Posted 21 days ago by beng low
I'm a non-UK tax resident. I'm selling my flat in the UK which I previously rented out. I have a UK work pension but since I live in Singapore, I've successfully applied for the pension withdrawal to be taxed in Singapore under the double tax treaty. So, after the sale of my flat, my only UK source income is the bank interest. My understanding is that the bank interest is subject to tax if it exceeds certain limits. However, I'm not sure what the limit applies to me. There's a starting rate for savings of £5,000, and a Personal Savings Allowance of up to £1,000. Does this mean that there's a total limit of £6,000 before the interest is subject to tax? In addition, I note that bank interest is considered disregarded income. Since I do not have any other UK income after the sale of my flat, and hence no tax which would otherwise be chargeable on non-disregarded income, does it mean that the tax on interest (if any) is therefore capped to zero? In that case, does it mean that I do not have to submit SA? Thank you
Posted 17 days ago by HMRC Admin 19 Response
Hi,
As interest would be seen as disregarded income, this is not included when working out your tax. Once your property has been sold, the tax return for the year the property is sold will be the last one required.
Thank you.
Posted 17 days ago by beng low
Thank you very much for the prompt response.

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