Is tax payable on interest earned?

r2d2c3p0

Could someone please let me know if tax is payable on interest earned?

More specifically if I had some funds in another currency for investment purposes with a non-UK institution and earned interest on the investment is the interest taxable here, or when I bring it back here?

Thanks!

Cook_County

It depends. If you are not domiciled within the UK (I believe you are domiciled in NZ) then only if/when remitted to the UK. You would save UK tax by taking appropriate advice for non-UK domiciliaries as you can pay rather less tax then a UK domiciled person.

r2d2c3p0

Cookie,

Thanks for the detail. I am not sure how you knew I _used to be_ domiciled in NZ -- you must be psychic.

I am now in the UK, so it looks like Mr Brown might get a slice of any interest earned regardless. Thanks for your advice.

Cook_County

I am confused. Changing domicile is not at all the same as changiing either residence or ordinary residence.

1. Are you ordinarily resident for UK tax purposes?
2. What steps did you take to terminate your NZ domicile (presumably of origin) & acquire a new domicile in England & Wales/Scotland or Northern Ireland? It is extremely difficult to change domicile.

r2d2c3p0

Cookie,

I am a british citizen living in Britain. I used to live in NZ. I have NZ permanent residency.

I have a NZ IRD number, an Australian Tax File No, but currently no NI number here in Britian as I have yet to work in the UK and my parents never claimed child benefits when we lived here, so there is no historical NI either.

I am confused about your differenitation between domicile and residence. Presumably they are different for tax purposes?

Thanks.

oldwiring

r2d2c3p0, to aid your confusion look at this http://www.hmrc.gov.uk/pdfs/ir20.htm

IT'll either cure it or make it terminal:eek: