Savings brought it from abroad when relocating to UK

Expatmichali

Trying to complete tax returns. We know we have to declare any income from abroad, such as our pensions which we have transferred here on a monthly basis. However, when we relocated, we brought some savings with us. Is this subject to taxation, please? Does it make a difference if you are domiciled or non-domiciled?

egoode

I asked an accountant about this when I was moving money from Australia. It basically depends if it's considered capital or income (e.g. interest). You need to pay tax on the income but not the capital. I basically decided if it was savings I put in the bank from taxed income (i.e. my Australian salary) that was the capital and any interest I earned was the income that needed to be declared. It doesn't make a difference if you are non-domiciled as the tax event happens as soon as the money enters the UK. Being non-domiciled means you don't pay UK tax on the income while it's outside of the UK.

Expatmichali

Thanks for the response! But what if one is non domiciled and brings the money to the UK? I assume you mean that the same principle applies as if you are domiciled? That you would tax on the interest rather than the capital?

egoode

If you are non-domiciled and bring money to the UK it's the same as if you are domiciled. Being non-domiciled just means you don't need to declare earnings outside of the UK and pay tax on them where as a domiciled resident would need to do that. Whenever you bring earnings into the UK though you must always declare them and pay tax on them.

madgagoo

Expatmichali wrote: »

Thanks for the response! But what if one is non domiciled and brings the money to the UK? I assume you mean that the same principle applies as if you are domiciled? That you would tax on the interest rather than the capital?

You would only need to pay tax on income earned whilst you are/were UK resident though. If you're bringing in income that was paid whilst you were non resident, that isn't liable to UK tax at all.