Savings Abroad

Belfastspurs

hi ...

i have savings in an account in another country .. i have been adding to it over the last few years as the intrest rate is so good , it was a way of paying of our mortage early ..

my question is ... do i need to declare it when i bring it back into the UK.

I have paid tax on it in the account it it in at the moment ..

so what is the rules if any ..

oh yer i am self employed as well

dzug1

You should have declared it (the interest) already - there might have been little no UK tax to pay under a double taxation agreement, but it forms part of your taxable income.

Belfastspurs

dzug1 wrote: »

You should have declared it (the interest) already - there might have been little no UK tax to pay under a double taxation agreement, but it forms part of your taxable income.

Can i declare it now on my next tax return which is in months time ?

Reaper

For the current tax year yes. But I suggest you also write to them with details about long it has been open and the figures for past years interest earned & local tax paid if you have them and explain you had not realised up until now you had to declare it.

The Inland Revenue have various arrangements with foreign countries to exchange tax information so if you fail to declare it they may catch up with you eventually depending which country you are using. If so I gather the first you get to know about it is a letter saying they will be conducting an enquiry into your tax affairs without giving a reason.

However as the UK has double taxation relief arrangements with over 100 countries it means if you are paying local taxes (as you are) then the amount you owe is likely to be small, if any.