offshore bank account

kodi_2

hello

I'm UK tax resident (not domiciled). I have bank account in Poland where I get interest on my savings. Local tax authority collect 19% tax on this interest.

#1 should I claim back this tax and paid it to HMRC?
#2 should I report this income to HMRC on self assessment return?
#3 what are tax rates on this type of income in the UK ?

thanks in advance

fengirl_2

If you do not remit the interest to the UK, then you are not liable to UK tax on it. If you do, then tax is payable at your highest rate (20% or 40%) with credit for Polish tax paid.

PolishBigSpender

I can help.

1) Yes, if Poland allows you to do so. Dealing with the Urzad Skarbowy is a nightmare at the best of times, but if you can get it back, then definitely do so.
2-3) If you bring it into the UK, then you should declare it. If it stays in Poland, then as far as I know, there's no need to declare anything to the UK tax authorities. Certainly, I never bothered declaring the interest in my Polish bank account.

The UK tax rates are far more generous than Poland's - if you have to pay tax on it, then pay in the UK rather than in Poland. But it is a horrible minefield, and I recommend getting professional advice..

Cook_County

PolishBigSpender wrote: »

I can help.

1) Yes, if Poland allows you to do so. Dealing with the Urzad Skarbowy is a nightmare at the best of times, but if you can get it back, then definitely do so.
2-3) If you bring it into the UK, then you should declare it. If it stays in Poland, then as far as I know, there's no need to declare anything to the UK tax authorities. Certainly, I never bothered declaring the interest in my Polish bank account.

The UK tax rates are far more generous than Poland's - if you have to pay tax on it, then pay in the UK rather than in Poland. But it is a horrible minefield, and I recommend getting professional advice..

I would not recommend tax evasion in the manner you describe.

Assuming you and the OP are both non UK domiciled then if the non-UK income or gains (including interest) are greater than £2,000 then you need to file a UK tax return.

If you claim the remittance basis then you lose the personal allowance and annual CGT exemption.

Once UK resident for 7 of the past 9 UK tax years you also pay a £30,000 charge if you claim the remittance basis.

kodi_2

OK, so best for me is to pay taxes on this interest in the UK. Tax rates are much lower and in case I will be UK tax resident for long time I wont have to pay remittance basic charge.

Also if my income from interest are less then 2000 GBP I dont have to pay any taxes? (currently I dont have any other taxable income)
What if my income is greater then 2k? Do I pay 0% for income up to 2k and standard tax rate for above income?

thank you