# Returning expat Brit and Tax?



## devxel (Feb 12, 2013)

Hi all,

First post and I hope it's in the right forum!

Been working in Asia for 25 years and now hoping to return with my family to the UK for good.

All the money I have earned and saved is in Guernsey and Jersey and I have paid local tax on it throughout the time.

I have read as much as I can but most confused ~ Will they be looking to tax me on everything I have saved over the years..or only on the interest over the years ...or only on the interest during the time we come back in the current tax year?

All help appreciated.

Cheers,

Jeff


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## nikkisizer (Aug 20, 2011)

Hi Jeff,

You will pay UK tax on any interest earned on funds held in UK bank accounts.


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## devxel (Feb 12, 2013)

nikkisizer said:


> Hi Jeff,
> 
> You will pay UK tax on any interest earned on funds held in UK bank accounts.


Thank you very much for your reply.

So do you mean I will have to pay tax on all the interest I have earned over the last 25 years? 

Cheers,

Jeff


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## nikkisizer (Aug 20, 2011)

If you have received interest on funds held in UK bank accounts then you should have/should pay tax on that interest.

Depending on your personal circumstances you may still be entitled to the UK basic personal allowance per annum.

The interest may have already been taxed at source but if not and depending on the amount received it may have needed to be or should be declared to HMRC by submitting a UK tax return.


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## devxel (Feb 12, 2013)

I'm really confused now. My bank is in Guernsey and I've been 'non resident' for 25 years and thus received interest without paying UK tax. 

I can't believe they could tax that interest if I was non resident.

I understand that they will tax the interest when I come back in July and backdate that to April 2013 - that's fine, but surely they can't claim tax back on interest earned when non resident?

Many thanks again,

Jeff


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## CapnBilly (Jun 7, 2011)

devxel said:


> I'm really confused now. My bank is in Guernsey and I've been 'non resident' for 25 years and thus received interest without paying UK tax.
> 
> I can't believe they could tax that interest if I was non resident.
> 
> ...


For any deposits which are outside of the UK I.e Guernsey whilst you were non-resident, you will only pay tax in the year you return not previous years. It is likely that you will only be taxed from your date of arrival, as I assume you meet the criteria here

"If you become UK resident part way through a tax year"

If you become UK resident part way through a tax year, you may be eligible for special tax treatment for the portion of the tax year in which you were not resident.
You will be taxed as a resident in the UK from the date you arrived and taxed as not resident before this date if both of the following apply:
you have come to the UK to take up permanent residence or to stay for at least two years
you were not ordinarily resident in the United Kingdom before you arrived
You may also qualify where you went abroad for full-time employment. If this is the case HMRC recommends that you read section 8.6 of the booklet HMRC6 'Residence, Domicile and the Remittance basis'.
HMRC6 'Residence, Domicile and the Remittance Basis'


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