Reporting foreign income for UK tax purposes

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Reporting foreign income for UK tax purposes
Simon Golland

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Posted by

Reporting foreign income for UK tax purposes
Simon Golland

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Income Tax is generally payable on taxable income received by individuals including earnings from employment, earnings from self-employment, pensions income, interest on most savings, dividend income,

Reporting foreign income for UK tax purposes

Income Tax is generally payable on taxable income received by individuals including earnings from employment, earnings from self-employment, pensions income, interest on most savings, dividend income, rental income and trust income. The tax rules for foreign income can be complex but you will need to make sure you are reporting foreign income to HMRC. If you are resident in the UK you will need to pay UK Income Tax on your foreign income, such as:

  • wages if you work abroad
  • foreign investments and savings interest
  • rental income on overseas property
  • income from pensions held overseas

Foreign income is defined as any income from outside England, Scotland, Wales and Northern Ireland. The Channel Islands and the Isle of Man are classed as foreign.

If you are a UK resident, you will usually need to complete a Self-Assessment tax return for foreign income or capital gains. The main exception is if your only foreign income is dividends and if your total dividends – including UK dividends – are less than the £2,000 dividend allowance or you have no other income to report.

If you’re not UK resident, you will not have to pay UK tax on your foreign income.

Did you know that we have a dedicated in-house team of US tax experts who work alongside our UK tax team so we are well equipped to help you when it comes to reporting foreign tax for UK tax purposes.

Find out more about the team here

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