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Where Taxpayers and Advisers Meet

Interest Income Tax

Anchorpoint
Posts:1
Joined:Wed Sep 20, 2017 9:01 am
Interest Income Tax

Postby Anchorpoint » Wed Sep 20, 2017 9:08 am

I live in Sweden, Swedish citizen and am contemplating an investment in UK

Let us assume that the investment will make 20.000 interest income and that I will fund the investment with a loan with an interest cost of 10.000

Is it the so that I will be taxed for the net interest income, in this case 10.000 ? (which is within the free allowance)

How is the reporting to the HMRC? Will they know that I have done business in UK and ask me for a SA ?

Thanks!

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Interest Income Tax

Postby darthblingbling » Thu Sep 21, 2017 2:03 pm

Basic answer without knowing all the fact is likely you won't have tax to pay in the UK, but you will be taxed as normal in Sweden

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Interest Income Tax

Postby maths » Fri Sep 22, 2017 8:55 pm

If the income to which you refer constitutes "interest" within the terms of the UK/Sweden DTA then no UK tax is chargeable on it (whether or not any borrowing interest is tax deductible or not).


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