Will I pay UK tax on any savings in this situation?

BernadetteN

Hi there,

I am after some advice regarding my liablity to tax on savings and income tax. The situation is that my husband is starting a 2 year job in Belgium in July 2008. We are ll moving there with him. He will be paid by a UK government department and pay UK income tax, as if he is still resident in the UK (he will sort of be in the situation a diplomat is in, except that he will not have diplomatic status). We should all then move back to the UK after 2 years, unless I swap places with him and do his job for 2 years, but eventually we should come back to the UK. I plan either to get a job in Belgium or to just be a housewife there. Now we are also planning on selling our house in the UK whilst we are living in Belgium, leaving us with around 220k which we currently plan to put into several UK savings accounts.

1) If we put a proportion of this 220k in my name, will the savings accounts earn interest gross of UK tax (up to my personal limit) if I work in Belgium or if I am a housewife in Beglium?
2) Is there anywhere else other than normal UK savings accounts that we could put this 220k? We are not interested in investments with medium or high risk, only really low risk savings accounts really.

I'd really appreciate any advice or any hints on where to do some more research.

Thanks for any kind responses.