UK Bank Account and Irish Taxation

[singinvestor]

Hi - I am looking to open up as a sterling bank account in the UK as a resident here in Ireland. Does anyone how this should get treated with Revenue? Is there particular forms I need to fill out and do I need to disclose interest earned on a yearly basis, etc?

Thanks

 

[Domo]

You will be taxable on the net bank interest you earn in the UK. You should disclose this on your tax return.

 

[Domo]

Tyou will be taxable in Ireland if you are domiciled here, but only taxable on any remittances if you are non-Irish domiciled

 

[Plover]

I'm from the UK but I'm not a tax expert.

If you don't earn enough to pay UK tax, you can fill in an HMRC R85 form and have interest paid without income tax. Otherwise tax will be deducted at 20%. I don't think there's a mechanism to get interest paid without tax as a non-resident.

HMRC will communicate the amount of interest earned with the (Irish) Revenue. You would then need to declare your other earnings and pay any extra tax to them. (Afraid I can't help with specifics of the Irish system)

I'm not clear on the position if you overpay tax due to this mechanism. In the UK the form to reclaim overpaid interest tax is the R40 (both forms are on the web with instructions, search for them). You might wish to read a document called HMRC6 which sets out the general position for non-residents. There's a section for non-residents on the HMRC website.

 

[Plover]

Found the relevant bit of HMRC6:

10.13.3 Interest from building societies and banks
Most banks, building societies and other deposit takers in the UK deduct UK
tax from interest they pay or credit to your account. If you are not resident
in the UK or are resident but not ordinarily resident here, you might be able
to arrange to have your interest paid without such tax being deducted. You
should only do this if you know that you are not going to be liable to UK
tax. Whether you can do this will depend on the terms and conditions of the
account and whether or not your bank, building society or deposit taker
offers this facility. Where this facility is available on an account you
complete a 'not ordinarily resident' declaration for the bank, building society
or deposit taker (not HMRC) which states that you want your interest to be
paid or credited without tax being deducted.
If you (or, in the case of joint accounts, any of the people who are
beneficially entitled to the interest) become resident or ordinarily resident in
the UK, you must tell your bank, building society or deposit taker right
away so they can start to deduct tax from the interest paid.


To receive your interest
without UK tax being
deducted:
• Ask your bank, building
society or deposit taker
for a declaration – form
R105.
• Give the completed
declaration to your
bank, building society
or deposit taker.
• Declarations will only
have effect from the
date it is received by
your bank, building
society or deposit taker
– they cannot be
back-dated.
• If the account is a joint
account you can only
complete a declaration
if all of the people who
are beneficially entitled
to the interest are not
resident or not
ordinarily resident.