naomijmoore

Hi all,

If you have UK savings you can apply to have the interest paid without any tax deducted.

However, if you have to declare this interest as 'income' in Oz you will be taxed there anyway won't you?

So, is there any point in applying to have your interest paid without tax in the first place? Might just as well pay in the UK and then you won't have to pay in Oz.

What do you think??

lesleys

Then you have to declare both the interest and the UK tax you have paid on your Aus tax form.

ABCDiamond

As lesleys says, your ATO tax return then has the UK interest income added, then the UK tax paid as an offset against Australian tax, and complications may arise...

Get it paid gross if you can and keep it simple

naomijmoore

Thanks.ou

just to clarify - you are saying continue to pay tax on UK savings interest?

EvannTel

No, don't pay the tax in the UK.
Remember interest rates are much higher here - and likely to rise before year end.

Wol

It doesn't matter - you end up paying the higher of the two taxes anyway so keep it simple and have the UK interest paid gross.