Is it ok to have a high interest bond in uk even though i live abroad?

ragtop

I live in scandanavia have been for 6 yrs i am just wondering if it is ok to have an savings account in the uk without having to declare it to my bank in scandanavia?i am an english citizen,i have never added money to my savings in the uk from my scandanavian bank the money has always been in the uk.
Is it ok to have them there?i am a bit confused?My address is abroad in scandanavia.

ragtop

little bit desperate here folks.

Jonbvn

It depends on the tax laws where you live. I would expect the bank in the UK will deduct UK tax at source. In Scandanavia I anticipate that you would be required to declare worldwide income.

gozomark

Is it OK ? Yes, but as said above, you might need to report it to your local tax authorities, depending on the local tax laws.

Why do you think you would you need to report it to your local bank ?

ragtop

gozomark wrote: »

Is it OK ? Yes, but as said above, you might need to report it to your local tax authorities, depending on the local tax laws.

Why do you think you would you need to report it to your local bank ?

Might that get me a fine though,and a tax bill?should i not of told them when i first moved to abroad?? bit worried now that i will get done for tax evasions...:eek:

gozomark

Better to tell them than wait for them to find out...

You have presumably already paid tax in the UK on the interest - what is your marginal tax rate where you are ?

ragtop

gozomark wrote: »

Better to tell them than wait for them to find out...

You have presumably already paid tax in the UK on the interest - what is your marginal tax rate where you are ?

Yep have paid tax on all the money i have in uk.not sure on tax rate over here at the moment.it varies,would i be better with an of shore account?

gozomark

if you would have to declare an onshore account, you would also have to declare an offshore one.

ragtop

:T

gozomark wrote: »

if you would have to declare an onshore account, you would also have to declare an offshore one.

i do not think i have to declare it,i have an british passport,the money i have i have worked bloody hard for,and do not want to have to pay tax on it after i have already paid tax in uk.tax rate here is 36 percent,vbut that is befiore y do there maths of how much debtr you have i.e mortgage and how much you earn.etc

jimbow25

If you are UK resident you have to pay tax on your worldwide income. I imagine the same principle applies if you are resident in whichever Scandinavian country you live.

The rough rule of the thumb with overseas tax is that you'll pay tax at the higher rate of the 2 countries, in total. So if the interest is taxed at 20% in the UK and you pay 36% tax in Scandinavia on your top slice of income you would be expected to pay the extra 16%, on top of what's been deducted in the UK, to them.

The exact situation will depend on which country you're considered to be resident / ordinarily resident / domiciled in for the current tax year, each of the 3 conditions have their own rules and conditions. But if you're resident overseas, that country will probably expect you to pay tax on your worldwide income.

ragtop

jimbow25 wrote: »

If you are UK resident you have to pay tax on your worldwide income. I imagine the same principle applies if you are resident in whichever Scandinavian country you live.

The rough rule of the thumb with overseas tax is that you'll pay tax at the higher rate of the 2 countries, in total. So if the interest is taxed at 20% in the UK and you pay 36% tax in Scandinavia on your top slice of income you would be expected to pay the extra 16%, on top of what's been deducted in the UK, to them.

The exact situation will depend on which country you're considered to be resident / ordinarily resident / domiciled in for the current tax year, each of the 3 conditions have their own rules and conditions. But if you're resident overseas, that country will probably expect you to pay tax on your worldwide income.

My worldwide income being the interest i get on my savings in the uk?i want to put the money in a pension over here in scandanavia but am very unsure of how i should go about it after i have left it so long to bring it into the country i live in,maybe they will get a bit funny?not a good situation to be in and am getting stressed about it,i got a bit of money but feels like it is useless to me.:mad::rolleyes: