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Sam
Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I relocated from Australia back to the UK. As part of the

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I relocated from Australia back to the UK. As part of the move I transferred the proceeds of the sale of our Primary residency to buy a property in the UK. The money was transferred via an Interactive Brokerage account (based in Australia), and I withdrew the GBP before transferring AUD to GBP. As a result I received AUD interest while paying GBP interest on the negative balance. For my tax return, can I net the GBP interest paid against AUD interest received (as it is in the same multi-asset account) or should I declare the full AUD interest received?
JA: Which tax year are you filing for?
Customer: 2015 onwards ( I need to submit an offshore disclosure)
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Customer: ok

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

HI

 

Thanks for your patience

 

No I am afraid you just declare the Australian interest and any tax suffered on that income - you cannot claim the interest charged on the negative UK balance as that is a personal expense so not available to claim the loss of

 

Thanks

 

Sam

Sam and 3 other Tax Specialists are ready to help you
Customer: replied 6 days ago.
Great thanks, that is what I expected. Bit silly as I made no profit and still paying tax on it.

Hi

 

But you earned interest on when you had it - and then transferred it after it was spent so incurred the charges due to personal reasons but interest is treated as income - negative interest '(loan charges in essence as you the appropriate income to offset it against - for example rental income or other income on which this situation could arise) so its just a personal charge that you cover yourself

Thanks

Sam