yalimart

The Carnwath Massive
Tax on Foreign Bank Accounts
I have just received a letter from HSBC in Istanbul explaining that since last year they are sharing my/everyone's account information with HMRC, so if I hadn't declared any interest on my annual return, for past years HMRC will know about it and act accordingly.
So if you haven't been declaring it you might find a brown envelope with a large bill dropping through your letterbox.

Foreign Account Tax Compliance Act (FATCA) | HSBC

Common Reporting Standard (CRS) | HSBC

https://www.gov.uk/guidance/worldwide-disclosure-facility-make-a-disclosure

We are fully paid up and declared both here and there so no hassle for us.

Martin
 

enoch

Member
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

I started to inform the HMRC in 2006,on my accountants advice.
 

oldfogy

Just passing through
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

Is it just me or does anyone else feel the same.
Which is WHY should I pay HMRC 7% from the interest I receive from my savings in Turkey of which the money also stays in Turkey, and if any of it did arrive in the UK it would be used and relevant tax's paid on all and any purchases which would then benefit the UK.

Yes I am livid and makes me feel like wanting to uproot and leave the UK permanently, which then makes the UK the all round loser on everything I currently buy.

EDIT.
Maybe someone can explain WHY I have to pay the UK anything for money not used or kept in the UK?

.
 

RIK

Member
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

A number of years ago we, with the help of a Turkish retired Tax inspector we told the UK Tax that we were no longer Residents. Not easy and you need help from someone in the know.After much toing and going we got it. Now we pay only Turkish Tax on Bank Savings and no UK Tax.You must live in Turkey for eight years and have had a Residence Permit for the same. Then ( with help ) you send off your application to Ankara and in two weeks it arrives back and you send it to UK. Tax in the UK is finished. I helped a friend who was paying a lot of Tax ( Huge pension ) and now he pays nothing to the UK.

Ian
 

trevoro

Member
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

Is it just me or does anyone else feel the same.
Which is WHY should I pay HMRC 7% from the interest I receive from my savings in Turkey of which the money also stays in Turkey, and if any of it did arrive in the UK it would be used and relevant tax's paid on all and any purchases which would then benefit the UK.

Yes I am livid and makes me feel like wanting to uproot and leave the UK permanently, which then makes the UK the all round loser on everything I currently buy.

EDIT.
Maybe someone can explain WHY I have to pay the UK anything for money not used or kept in the UK?

.

Old Fogey.Not trying to have a go but would you be entitled to any benefits of UK if required ie NHS
 

oldfogy

Just passing through
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

Old Fogey.Not trying to have a go but would you be entitled to any benefits of UK if required ie NHS
Not a problem but yes, NHS benefits are available to me at the moment, for what we always say 'for what I also contributed into for the last 40+ years'.

It's just that it annoys me when this government are happy enough to spend Billions of pounds on migrants who have never contributed anything into the system and probably never will. but then want to take a cut of our hard earned income.
 

enoch

Member
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

Is it just me or does anyone else feel the same.
Which is WHY should I pay HMRC 7% from the interest I receive from my savings in Turkey of which the money also stays in Turkey, and if any of it did arrive in the UK it would be used and relevant tax's paid on all and any purchases which would then benefit the UK.

Yes I am livid and makes me feel like wanting to uproot and leave the UK permanently, which then makes the UK the all round loser on everything I currently buy.

EDIT.
Maybe someone can explain WHY I have to pay the UK anything for money not used or kept in the UK?

.

Aren't you a uk resident?
 

oldfogy

Just passing through
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

Aren't you a uk resident?
I'm going to say with what I have already stated then you know damn well I am so STOP 'trying' to be so facetious,when my point is why should I give a % of the interest I earned from a foreign investment, which was invested there simply because interest in the UK establishments is next-to-nothing.
 

Shen60

Member
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

I too have received a letter from Istanbul and whilst I understand that details of 'off shore accounts' will be shared with UK HMRC, still unsure whether this means that I'm required to pay tax on the interest earned to both Turkey and U.K. Tax authorities. Is this the case Yalimart or anyone in the know?
 

Shen60

Member
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

Oldfogy, I share your views too, makes my blood boil and sometimes want to say goodbye to the UK all together.
 

immac

Senior Member Has-Been
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

You have to declare any foreign earnings regardless of whether tax is due or not. This is not new. The tax offices throughout Europe and USA have linked their data bases for years, so they will know if you have a house in your name. The crackdown with the banks is new.

I became a tax exile after living in Turkey for 5 clear tax years. Had to declare that I had no ties to UK in the form of accounts or property, and then got a letter that I cherish, telling me they had no interest in me unless my position changed. It has saved me many thousands of pounds.

Ian
 

yalimart

The Carnwath Massive
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

Shen60 you are obliged to make a declaration of foreign earnings as Ian says, you should be filling a self assessment in, I do mine online it calculates if any tax is due, if you are a 20% tax payer in the UK you will pay the difference,
For those who haven't declared it will or could be treated as tax evasion, whilst I can't see them prosecuting someone for a few £ in the HSBC they may send out tax estimates and it is usually down to you to prove otherwise.
I'm self employed under the CIS scheme so they usually owe me as I pay my tax up front.
I pay so much into my pension each year and get 20% off the government so for me that's the best way of saving, couldn't get those rates in Turkey,, but what works for me wouldnt work for all.

Martin
 
Last edited:

Hilsjw

Member
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

Is it true that in the U.K. if you have overpaid or owed tax. After 3 (or 5 years) that becomes void ? If so, would that count with an interest account in say, Turkey ? i.e. if you have had an account for 10 years, the interest would only be payable for 5 years not 10. Hope this is clear !
 

Shen60

Member
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

Hi Yalimart, I have not earned the money in Turkey, it's just a bit of savings that has been transferred there to use when on holiday. I was under the impression that any interest paid on savings in Turkey the tax will be deducted at source like in the U.K. Have never had to do a self assessment before so a bit naive about these things. I'm employed in the UK full time and a tax payer and savings in the UK is of course taxed. So are you saying that I now need to declare my savings in Turkey to HMRC in the UK and they will take tax 7% from it??
 

yalimart

The Carnwath Massive
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

Shen60 the onus is on you to decide whether you should fill in a tax return, (now you have seen my link you will realise that you do) you pay tax on interest here in the UK, interest in Turkey is treated no differently, its still seen as income. You also have to calculate the TL to £ rate on your declaration, I always took the average over the year and it was never questioned, when I spoke with the revenue they explained they had guides.
What you cant do is mitigate the interest with the losses on the exchange rate.
I have always found HMRC very helpful and worth a call if you are unsure of anything.

Martin
 

Kusann

Member
Tax on Foreign Bank Accounts
Re: Tax on Foreign Accounts

I have just heard from Yapikredi saying something about share info with ??? thought this was just data and something to do with date protection not sure if the same thing. We declared ourselves non residents years ago no tax to pay only in Turkey.
 

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