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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Would love some advice. I grew up in the UK but am currently

Customer Question

Hi
Would love some advice. I grew up in the UK but am currently living and working in Australia, though I spend about 2 months a year in the UK. I do tax returns in Australia and in the UK. I have a rental property in the UK which I inherited from my mother. I submit a tax return on that. I also have funds in an off shore account in the Isle of Man. These have been earning interest since i inherited them in 2007and this has not been declared as i didnt think i had to declare it being in an off shore account. My question is, if I transfer these funds into my UK account, am i liable for tax and if so how far back does the tax go and is it tax on the interest only? we are only talking a small principal sum of about 100 thousand pounds. I would love some advice as mu australian accountant doesnt know what to do with this. :) thank you so much
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Leave this with me while I draft my answer.
Expert:  TonyTax replied 1 year ago.
Assuming you are not tax resident in the UK, notwithstanding the fact that you have to disclose UK source income, the Isle of Man interest is not taxable in the UK. Even if you brought the interest or the capital from the Isle of Man to the UK, you would not pay UK tax on it unless you were UK tax resident when you earned it. Any interest earned from a UK bank in the UK would be taxable but you can apply for it to be paid gross if you have no tax to pay in the UK. I hope this helps but let me know if you have any further questions.