Overseas savings account interest

[pdc]

Would like help as I need to declare my overseas income and received a letter from HMRC to declare overseas assets and income. I am a UK resident. I earn interest in India on saving deposits. The total interest earned is roughly around £4000 per annum. I also earn dividend of £400 per annum. I am on higher rate tax band and my wife is on basic rate tax band. The overseas accounts are held jointly by me and my wife.

1)How will this be split between me and my wife and do I need to declare this income?

2)For how many past years have I to declare?

[bd6759]

1. Both you and your wife need to declare the income. It is deemed to earned equally between you, so 50/50 split.

2. For as many years as you have had this income and have been resident in UK.

[pdc]

Spoke to HMRC regarding my letter and the adviser told me that I have to declare my income only when I bring money to UK from overseas. Is this correct? He also informed that this is a generic letter sent to number of people. Any thoughts most welcome. Thank you.

[DavidTreitel]

The HMRC answer might be true if the income is less than £2,000 per taxpayer and the return has the right boxes ticked. Professional advice is recommended as to how to reply to any nudge campaign letter from HMRC.

[j_khanum]

Hi,

You have received the worldwide disclosure facility letter - this letter is sent to any individuals who actually do not need to declare any foreign income/gains.

It does depend on your situation.

Are you a UK-resident but with a non-UK domicile status? If so, then you are entitled to the remittance basis and therefore do not have to declare the foreign income provided it remains offshore (i.e. not remitted to the UK). Just to clarify, have you filed tax returns previously and how many years have you been UK-resident.

Otherwise, if you are UK domiciled, then you will have to declare foreign income/gains for each tax year that you have been UK-resident. As the accounts are jointly owned, it will be a 50:50 split. As a higher rate taxpayer, you are entitled to a tax-free savings allowance of £500. You are also entitled to the standard £2,000 dividend tax-free allowance as well.

Regards,

[pdc]

Hi

This is exactly what I was informed by HMRC. I have been in UK for 17 years. I pay my taxes through PAYE and has never filed a Tax return.

Many thanks

[j_khanum]

Hi,

Since you have been resident for 17 years, then the situation can be quite complicated. Has the foreign income been arising on an annual basis for a long time or simply recently. You would have to tick Box 1 and can declare the foreign income via the worldwide disclosure facility or via completing a self-assessment return(s).

Regards,