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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4808
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Hi There. I'm a Canadian/British citizen and I'm self employed.

Customer Question

Hi There. I'm a Canadian/British citizen and I'm self employed. I have an HSBC account that allows me to transfer funds globally. I have a saving account in Canada and I transfer around £1000 from that Canadian account to my UK account monthly. Am I liable to pay tax on this money? Does it count as income? I've already paid taxes on the Canadian money.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.

Hello, I'm Keith and happy to help you with your question.

I assume that you live in the UK for more than 183 days in each tax year. In that case any interest you receive on your Canadian savings account should be declared to HMRC on your annual self assessment tax return. However, under the Double Taxation Treaty between the UK and Canada any tax deducted by the Canadian authorities is allowed as a tax credit against UK Income Tax, the purpose of the Treaty being to ensure that the same income stream is not taxed in both jurisdictions.

I do hope I have set your mind at rest on this matter.