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  • Double Taxation Agreement (DTA)-Foreign Interest Income-Turkey

    Hi, I am UK resident (not citizen) and filling self assessment for foreign interest income. There is a Double Taxiation Agreement (DTA) between my country (Turkey) and UK which says: "the tax so charged shall not exceed 15 per cent of the gross amount of the interest". I already paid 20% income tax in my country for this interest income.In this case can I claim complete tax relief for this interest income as the total tax paid already exceeds 15%. Below is the Double Taxiation Agreement (DTA) article: https://assets.publishing.service.gov.uk/media/5a80019ee5274a2e87db7495/turkey-dtc_-_in_force.pdf ARTICLE 11 Interest (1) Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. (2) However. such interest may also be taxed in the Contracting State in which it arises, and according to the law of that State: but where the beneficial owner of the interest is a resident of the other Contracting State the tax so charged shall not exceed 15 per cent of the gross amount of the interest.
  • Were you unable to transfer some or all of your overseas income to the UK

    Hi, while filling the online self-assessment, on the foreign income section it asks, "Were you unable to transfer some or all of your overseas income to the UK?" I replied "Yes-all" since I did not bring that foreign income to the UK. In this case system says, "you are not required to complete the foreign section". Therefore, I could not report the foreign income. Can you please check if this is the right way of proceeding? If a non-domiciled person does not bring his/her foreign income to the UK then is it exempt from tax and tax self-assessment? It is important to note that I am not claiming remittance basis.
  • HRMC system gives character error

    I am filling online self assessment and system gives below error when I try to enter information for foreign income section. I entered all characters as required though the system keeps giving this error and prevents me to enter the information that it asks for. Does anyone know what could be the reason? On the Foreign income details (Page 1 of 2) systems asks: If 'Yes', please give full details including the country from which the income arose, the amount in foreign currency and any foreign tax paid: (optional) Then gives below error although I enter all characters correctly: There is a problem 'Please give full details...' can only contain alpha, numeric and the following special characters: ' ( ) * , - . / & @ £. The enter (or return) key located on your keyboard is not accepted. Please amend.
  • RE: foreign interest income

    Hi, This income is not brought to UK and already taxed in the foreign country. I see following explanation in the HRMC website but it is not quite clear. So as per below statement do I need to pay tax only for the portion that is above 2000 GBP? Because I see for foreign income below 2000 GBP HRMC states it will not be taxed. Also I will not claim remittance basis since it charges 30k GBP/year after 7 years and it does not make sense to pay this amount for a minor income of 2-3k GBP. HRMC Statement: "You do not pay UK tax on your foreign income or gains if both the following apply: they’re less than £2,000 in the tax year you do not bring them into the UK, for example by transferring them to a UK bank account If this applies to you, you do not need to do anything." Source: https://www.gov.uk/tax-foreign-income/non-domiciled-residents
  • RE: Foreign income tax treshold

    Hi, I will not claim the ‘remittance basis’ since I see it charges £30k/year after 7 years and it does not make sense to pay this amount for a minor income of £2-3k. Also this income is not brought to UK and already taxed in the foreign country. So in this case is there an allowance limit for a non-domiciled UK resident? I see in the HRMC website I see it says following: "You do not pay UK tax on your foreign income or gains if both the following apply: they’re less than £2,000 in the tax year you do not bring them into the UK, for example by transferring them to a UK bank account" So if the income is slightly more than £2k do I need to pay tax for only the portion that is above £2k?
  • Foreign income tax treshold

    For a non-domiciled UK resident,does the UK tax on foreign income only apply to the portion of income over 2,000 GBP? For example if the foreign income is 3,000 GBP is only the portion above 2,000 GBP which is 1,000 GBP taxable?
  • foreign interest income

    Hi, For a non-domiciled UK resident,does the UK tax on foreign income only apply to portion of income over 2,000 GBP? For example if the foreign income is 3,000 GBP, is only the portion above 2,000 GBP which is 1,000 GBP taxable?