nomadic_user

@ HMRC Admin 32 That is not correct information w.r.t NRE interest earned . In case of NRE interest anything below £2k is non taxable , please see the link below https://www.gov.uk/tax-foreign-income/non-domiciled-residents#:~:text=Tax%20if%20you%E2%80%99re,UK%20bank%20account My question was for above £2k , is it the difference that is taxable or the whole earned interest ex total interest =£2600 then taxable interest is 2600-2000= £600 ? or whole £2600

Examples , Higher Tax payers if Person A has NRE Saving Interest = £1995 , if Person B has NRE Saving Interest = £2010 . What is the taxable earned interest ? If you say whole for Person B £2010 is taxed at 40% with £500 non taxable allowance then effective earning is (2010-500)*60% = £906 while person A's earning is still effective £1995 which doesn't make sense ? Or is it difference above £2000 i.e. 2010-2000= £10 is taxable for Person B ?

Non-domiciled-residents don't not need to fill Self Assessment if interest earned is less than £2000. But since I do fill Self Assessment every year , should I declare if interest earned is less than £2000 ? If I declare & enter "Interest income from overseas savings amount " as £2000 , It applies 40% tax rate on it although it was tax free as mentioned above. So what is the right way to deal with this limitation of self assessment HMRC website? Or I should not declare any interest income since it is less than £2000 , will it end up as Tax Fraud?

Lets assume I have a NRE Cumulative Fixed Deposit where Interest is compounded quarterly & payed out on maturity. This was done for 2.5 yrs on 25th Sep 2021 .Premature withdrawal on the FD is allowed with a penalty . So do I declare interest earned for every FY Self Assessment or all together on maturity 25 June 2023.

Example 2 in SAIM2440 page shared by "HMRC Admin 19" above states that if you can access the principle/interest by pre-mature withdrawal (even though you have to pay penalty ) then "the interest arises and is taxable each year as it is credited." So if OP your 5- yr FD in NRE allows to break the FD with some penalty then you have to declare each FY rather wait for maturity. @admin correct me if I am wrong here.

I am a UK Resident /Indian Citizen , so if I have submitted my FY21-22 Self Assessment without declaring my income via Interest earned on Fixed Deposit in India. I now understand that it needs to be declare such income & pay tax. Can I do it next year 22-23 ? Will I have to pay any penalty for not declaring in Fy21-22?