HMRC Admin 32 Response

Hi,

You cannot opt for one choice or the other. If the terms and conditions of the bond did not allow access until maturity, the interest would arise and be taxed at that point. You are therefore bound by the conditions of the account.

Thank you.

Hi,

If not claiming any Foreign Tax Credit Relief then just put details in the additional information section to confirm that the employment declared on SA102 is a foreign employer.

Thank you.

Hi,

In the SA102, you would show the actual pay and tax as shown on your P60. The element of the pay that is not taxable in the UK, would then be showns on SA101,

Self Assessment: additional information (SA101)

Page Ai2 in box 12 " Foreign earnings not taxable in the UK". For online tax returns, you would select Other tax reliefs and deductions, when tailoring your return and enter the amount of income not taxable in the UK. This entry will give a credit in the tax calculation, for the income not taxable in the UK.

Thank you.

Hi,

Please refer to guidance here.

Tax on foreign income

Thank you.

Hi Ralph Shenton,

If the bank details the repayment was sent with are correct, you will need to speak with your bank. If the bank details are not correct, contact our Self Assessment team again and they will need to refer this on for review.

Thank you.

Hi,

There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax.  

Further guidance can be found here:

Tax on savings interest

Tax on dividends

Thank you.

Hi,

By having the interest paid into another account this means that you can access it to allow a withdrawal and as such would be taxed on an annual basis. For keeping it in the bond, whilst it may be applied annually, you cannot actually access the funds until the fixed term is finished. If you then choose to close the bond early, this is also seen as being able to access the fund and the interest and you would therefore need to declare the interest in that tax year.

Thank you.

Hi suresh Patel,

This depends on whether you are UK tax resident or not (or non domicile).

Please see guidnace at:

Tax on foreign income

Paying tax on the remittance basis (Self Assessment helpsheet HS264)

Thank you.

Hi,

Much will depend on the type of account you have. If you have access to withdraw any of the funds at any time, then the interest will be taxable in the year in which it arises. If you have an account where you cannot access the funds until the end of a set term, then the interest would be taxable at the end of the fixed term, when you can access the funds.

Thank you.

Hi Amit Vanjani,

Yes, as a UK tax resident you need to pay tax on your worldwide income.

Thank you.