Interest/tax on foreign savings?

[blueovercream]

I've got some savings in a New Zealand bank account, earning me a small amount of interest (much less than £1000 per annum) since I left New Zealand and returned to the UK about 6 years ago. I am no longer resident in NZ, and have not paid employment-based tax there since I left.

The interest is taxed automatically, in New Zealand (in NZD) each month as it enters my account.

I have the option to switch to a higher interest account but first have to re-confirm my tax residency status in NZ. If I continue to pay tax in NZD on whatever interest this new account makes, will I have any further tax liability on this interest in the UK?

Thanks

[The Leaper]

The summary position is that if you are UK tax resident and have overseas interest, it is taxed in the UK on what is called the arising basis. If you pay tax in NZ on those earnings, and it seems that you do, and as there's a double taxation agreement between UK and NZ, then any tax paid and therefore withheld in NZ can be offset against the UK tax due.

You are required to complete the UK HMRC SA, and include completion of the forms for the Foreign Earnings.

All this is on HMRC's website.

That's the way I understand things based on my UK HMRC SA when declaring dividends I receive in the USA.

R.