Pulaski

You said it!
Interest income is, ....er, ..... income, subject to income tax.

Any tax that you pay in the UK is deducted as a credit from your tax liability in the US. So in short, you do declare it in the US, but deduct the tax paid from the actual tax payable in the US.

If you want to argue further, take it up with my tax accountant!

Manc

no need to argue, that's what I said.

yurig2

I too have an Egg Savings account in the UK and recently contatced them as I will be moving to the US next month. They told me ...

"Egg accounts are available to UK residents only.

For this reason we're unable to change our records to a non UK .

There's a way around this though, as I'm sure you wish to keep your Egg Savings open. You'll need to keep a UK bank account and maintain UK residential status. You'll also need to nominate a UK address that we can send correspondence to."

Keeping the uk bank account open and nominating a postal address is no problem for me but does anyone know about the residential status? Do I lose it as soon as I move to the USA?

Thanks Mark

Big D

just don't tell them - give them a UK address and keep a UK bank account?

Shaolin_Dragon

I'm no tax lawyer, this is just my two nickles worth!

I work for a large BS in the Uk, and i know that..if the account is opened within the uk, then us as a BS dont have a problem with you having a foreign address on the account. the only account you are not allowed to have a foreign address on, is the ISA account (this is based on accounts with ourselves). but thats cause its a government run account.

other alternative, is to open an offshore savings account.

Also, you will still get taxed unless you complete the R85. If you are out of the country for more than 6 months (i belive) then you are not classed as tax resident. but the IR can give you a better answer on that one. those guys are the be all and end all when it comes to tax status. Off the top of my head, i dont remember the number, but i can certainly post it tomorrow, if anyone is interested.
Also, if you have been taxed by a company on your accounts, and you shouldnt have been, you will need to get an S352 certificate to prove to the revenue what tax was paid, and they should then give you a leaflet named R40, which i'm pretty sure you can get from the net, or from the tax office in the uk.

Hope this all makes sense to someone..as i said, i'm no tax expert, and therefore, this is just my experience!

Also, found this link..might help some people.... Britons living abroad

dunroving

Maybe Egg has different policies to other banks? Smile has changed my address details to the US but hasn't told me to cancel my account - however, they wouldn't allow me to open a new account (checking), even though I have an ISA and savings a/c with them, because I am non-resident and according to them that means they can't run a credit check on me.

Shaolin_Dragon

Essentially that is correct. If you are no longer living in the UK, then they cant run a credit check. Even though the US and UK both use companies like Equifax and Experian, neither one actually use the others records.

Bob

I thought it was P85?

Shaolin_Dragon

not sure if you are thinking of the P45, which is what your employer gives you when you leave their employment. To claim tax free savings/accounts etc, its the R85.

Big D

It is income tax not capital gains - money from investments etc etc. However CGT is treated as the top slice of your income so would come under the 4k threshold anyway.

Technically you declare it in both countries - in the US you are taxed on your worldwide income. But would they ever know..... you can write to your bank and ask them not to deduct interest at source. As a US resident you should probably be filing a UK tax return regardless of how small the income is.

sorry - this has probably already been discussed to death i just started at the top of the post!!!

Big D

I just didnt tell any of them - especially as they may cancel credit cards etc - you are quite a high risk if they cant get to you!!!

Bob

Nope, wasn't the P45...I was thinking about this: http://www.hmrc.gov.uk/cnr/p85_p85s.htm

What you file when you no longer live in the UK.