Foreign Investment income in Tax return

andytaff

Hi All,

Hope there is someone out there who can answer this... it may be a silly question, but any help will be greatly appreciated.

During the particular tax year I transferred over some money from an overseas investment account to the UK.

My question is this:
Is the amount you enter in the tax return the actual total amount transferred over to the UK or is it simply the interest that the overseas investment accrued over the year (as detailed in the overseas investment tax certificate)?

The form seems to suggest it is only the interest but after a good bit of searching online I still really have no idea.....

Note - I am UK registered and domiciled.

Thanks for any help!

Andy

eskbanker

UK tax returns are essentially all about taxation of income, so it's income from investments that needs to be declared, whether that takes the form of dividends or capital gains, whether in the UK or overseas. Investments (as opposed to savings) rarely generate interest as such, except nominal amounts on cash balances.

Transferring funds from elsewhere to the UK doesn't attract any UK tax liability, but check whether there are any implications in the country of origin....

andytaff

Thanks Eskbanker,

I think I get that. Basically I should not put the amount that is transfered over to the UK in the ax return...however, I should declare all income/gains that are held within the investment account. There are no Dividends, so I assume its just the capital gains.

Now I just need to work out what that is in German....

Thanks again,

Andy

bowlhead99

Yes, it's true that you don't need to declare the amounts remitted to the UK unless you are non-uk domiciled and claiming the special 'remittance basis' of taxation.

If you're UK resident and domiciled you simply declare your worldwide income (interest and dividends and other income) in the income part of your tax return, and capital gains in the capital gains part of your tax return. If the only income you received from the investments was untaxed interest under £2000 and dividends under £300 and are not trying to claim relief for overseas tax, you can avoid filling in the special 'Foreign' pages and include them in the regular UK sections. For larger amounts you would fill out the foreign pages.