Thank you for your reply, but that wasn't what I was asking.
The interest is all being paid in the current tax year 2023/2024.
What I was asking us whether a British citizen (with a UK passport) who is non resident can still have a personal allowance whilst living abroad. If so, does this need to be applied for or is it automatic?
If I can have a personal allowance, then the interest paid in that period would go against my personal allowance and no tax would be due.
I left the UK on the 1st January 2023 and travelled to New Zealand with my partner with the intention of securing a Partner Work Visa.
As there is no guarantee that the visa will be issued, I consider this period to be an extended holiday, especially as I am on a visitor visa and unable to work here. Once I have received my visa, my intention would be to become non resident from a tax residence perspective. I am also aware that once I have been in New Zealand for 183 (3rd July), I will be classed as a tax resident in New Zealand. In either case (visa or 183 days -whichever comes first), I know at that stage I need to submit a P85 Form online.
I already sold my house in the UK before I departed, so I have no rental income, but I do have the proceeds from the sale in interest bearing accounts.The the expected interest will be around £10,000.00 per annum, and so will exceed the £1,000.00 personal tax allowance and £5,000.00 Starting Rate for Savings.
The questions I have in that respect are as follows:
1. The interest received won't be paid until June 2023 and December 2023 when the term deposits mature. As I have not earnt any income in the UK for the tax year 2023/2024, am I able to utilise my Personal Allowance for that year and thus not have to pay tax on the interest income?
2. If the answer to question 1 is yes, then do I have to apply for a Personal Allowance using form R43 or is it automatic?
3. I assume in either case, I will have to complete a self assessment tax return?
4. Am I correct in my understanding that there is a Double Tax Agreement with New Zealand and therefore I won't have to pay tax twice? I am aware that I will have to declare it on my New Zealand tax return.
Please do let me know if there is anything else I have overlooked.