I can't find the answer to this

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1

So, I am a higher rate tax payer and a UK resident

I see that T212 offer higher interest rate on some foreign currencies.

I know that I can earn £500 per tax year in GBP interest without having to declare it.

Can someone please tell me if I exchange (for example) £500 to US dollars or any other non GBP currency and leave it to start earning daily interest, what is the threshold before I have to declare it, is it seen as foreign earnings or how does it work.

I have tried to research it myself, but I can not find a reliable source for information.

Thanking you wonderful people for any advice that is forthcoming.

2

Why would it be foreign earnings, if it’s earned in the UK?

3

Your limit is £500 equivalent of interest before tax.

Reddit probably will have better answers how to maximise tax efficiency, but in general ISA/Premium Bonds(4.4%).

4

I’m not an expert and don’t know the answer but I would have thought that it would be uk earnings. You can have bank accounts denominated in other currencies but even if you earn interest on a USD account you are still living and resident in the UK. The bank is still in the UK. They just give you a USD account. I would have thought it is exactly the same with this bwdik

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5

Thank you for a well thought out reply, that is unusual on here.

I would have thought what you said is the case, but you have to be so careful as we don’t want the annoy the tax office.

I also don’t know if the earnings threshold is still £500. But you would think it is.

Trying to use the HMRC website to find the information is impossible as its coded by orangutangs.

6

Tax on savings interest: How much tax you pay - GOV.UK