Guido
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UK bank accounts and cash ISAs: interest declaration and taxes after moving overseas
My wife and I moved to Italy from the UK, and obtained Italian residency on 30/10/2023 and on 20/12/2023, respectively. HMRC sent us letters confirming neither of us has to file a self-assessment any longer. We are no more registered. However, I was wondering how we should treat bank interest, and there are two cases to consider here. We still have some cash ISAs and normal bank accounts in the UK, and they all will remain open. Should we only pay taxes to the UK on the interest earned until 29/10/2023 and 19/12/2023 (i.e. the day before each lost their UK residency status), respectively? Or, should we keep paying taxes to the UK? If so, how to do that for the personal bank accounts? On the other hand I am aware cash isas taxes are paid at source, therefore it seems like we are already paying taxes to the UK for cash isas. Are such taxes still due to the UK even though we moved overseas? If not, what should we do to pay them to the Italian revenue&custom? Santander bank - where my wife and I hold three personal current accounts - claims that if the money deposited is not transferred to Italy, we will pay tax on the interest in the UK and not in Italy. However, as mentioned above, we are no longer registered as self-employed in the UK and are no longer UK-resident. And as far as I know, the self-assessment is the only way to be taxed by HMRC for interest earned on personal bank accounts. But maybe our bank have already communicated to the HMRC about our new tax and residence status. Could you, please, confirm if that is the case, and what should we declare and where?