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  • RE: Interests on savings from fixed-rate bonds on foreign account

    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.
  • Interests on savings from fixed-rate bonds on foreign account

    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.
  • RE: Foreign interest and dividends

    Hello Admins, I hope you can advise on the below issue. I am a UK tax resident, domiciled in the UK. I have recently received a letter saying that HMRC’s information indicates I currently have (or previously had) offshore income or gains and if I have additional tax to pay, to tell HMRC using the Worldwide Disclosure Facility. This letter prompted me to realise that the investment advisor that manages my investment portfolio has matured overseas interests and overseas dividends on some of my investments. This has become clear after enquiring with them and requesting further information. Regretfully, I have been unaware of this until I received the HMRC, and I hope I can rectify retrospectively my position for the amounts received each tax year (from 2016 until the current financial year). The amount of overseas interest does never exceed £470 each year and the amounts of dividend is below 125£ each year. Based on this information, can you help me determine whether I have underpaid tax? If so, I would like to take steps to correct it. Am I able to submit my self-assessment tax returns retrospectively for the previous years? I have never submitted self-assessment returns before, as my employment circumstances did not require it. Is there anything else that I should do? Thank you.