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sorry I did not explain correctly the situation.
In my case there is NO interest in the foreign EUR bank account earned because the foreign bank account DOES NOT offer any interest over the money hold in the account.
If this is the case (no interest) does anything need to be declared related to just the fact that EUR/GBP ratio changes over time?
Thank you again, sorry last questions to be sure: - by interest in this context what is meant is the usual interest the bank gives you each year, correct? e.g. 1% of the sum you have in the bank account - in this situation given the fact that some money is hold in a foreign bank account in a foreign currency and EUR/GBP ratio keeps changing over time, does anything needs to be declared/taxed about this? (again money is not transferred later back to UK/GBP) thank you
Just to be sure. The only income before leaving UK was from employment by UK company (so not from self employment). P85 was also completed and a taxes refund received from HMRC.
Regarding the question. By calling HMRC they said there is no need to declare (no need to do anything like completing a self assessment) and pay taxes to UK over the income from overseas employment earned after the UK is left permanently. Even if the UK was left e.g in December and the UK tax year ended the next April. So no need to declare and pay taxes over the overseas income from January to April.
Can you also confirm this?
I don't understand then when a self assessment, SA109 and a split year claim is required. Can you explain a bit more?
yes, sorry, my questions were related to UK/HMRC side for taxes/declarations.
So basically nothing to declare/taxes to pay on UK/HMRC side if no bank interest is earned for this kind of activity, correct?
In the following situation:
- EU citizen, UK resident
- leaves the UK to work full time overseas and has the only home overseas
- before leaving the UK the only income was from employment by a UK company
- P85 is completed with P45 given by the company after end of employment date
- by reading the split year rules the person seems to qualify for it for leavers
question: is the split year treatment automatically applied by HMRC after completing the P85 or some sort of application/self assessment is required to request for it explicitly?
can you confirm that there is no need to declare and/or pay taxes on the following:
EU citizen which is UK resident that is leaving UK to go to EU country. The person has a UK bank account in GBP and a bank account in EU country in EUR currency with money in it but there is no interest earned. The person transfer his savings from the UK bank account to the EU bank account (so a conversion GBP to EUR is done and to get a better conversion an online money transfer service is used). The money is not later sent back to UK (and thus not converted back from EUR to GBP).
is it correct that no declaration has to be done related to just owning a foreign bank account with no interest earned?
is it correct that these transaction do not need to be declared and no tax is related to it?