robb

Member
tax
hi . can anyone tell me if i need to inform the British tax man if i open a Turkish Bank Account.
 

immac

Senior Member Has-Been
tax
He will probably be informed by the bank, but that does not mean you should not bother telling. He will be interested in what is in it and where it comes from.

Any money, asset or investment outside UK should be declared. If you don`t inform him there are hefty fines for non-disclosure.

Ian
 
tax
Interesting topic, I never thought of that. But me too, I'm living in Turkey and so am not paying UK tax???

Gonna have to do some research I think!
 
tax
Thanks Yalides, I've just had a look at the tax office website, which says if you're non resident in the UK, you are only liable for tax on any income made there. So I'm guessing they don't need to be informed about funds overseas.
 

Yalides

Am I pretty ?
tax
Thanks Yalides, I've just had a look at the tax office website, which says if you're non resident in the UK, you are only liable for tax on any income made there. So I'm guessing they don't need to be informed about funds overseas.

If you have your pensions paid into non interest accounts in UK then the taxman is not interested.
If you have money in the so called high interest accounts in Turkey then Turkish tax is taken at source at 1 1/4%. That,s the tax at Garanti Bank.
 

jcrian

Member
tax
I posted this in earlier thread but didn't get an answer...............

Does anyone know if you get a tax free allowance in Turkey before you pay tax like you do in the UK? (approx £6k rising to £9k when you are 65-UK)

If you are paying tax at source in Turkey on all interest then you could be losing out.
 

Harem

I've cliqued
tax
From that it doesn't look as though there is a tax free element to any kind of income. Thanks Ian.
 

jcrian

Member
tax

Thanks for that. From those tables it appears you will be paying approx £700 tax on the first £6000(approx 14500tl) earned in Turkey which would be tax free in the UK.

After doing some googling found these tax tables that show 15% tax on interest. Which would make it £900 tax on the first £6000 invested in Turkish Lira.

Paying Taxes in Turkey Details - Doing Business - The World Bank Group
 
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jagman

Member
tax
Thanks Yalides, I've just had a look at the tax office website, which says if you're non resident in the UK, you are only liable for tax on any income made there. So I'm guessing they don't need to be informed about funds overseas.

Interesting point, "if you're a non resident in the UK" does that mean those doing the "visa runs" are in effect still residents of the UK as they do not have a residency in Turkey and therefore still liable under UK tax laws, i.e. having offshore accounts. Hope that makes sense.
 
tax
I'm not 100% clear on that, but it would make sense that if you are doing the visa runs then you will still be resident in the UK. But I don't quite understand offshore accounting, I've never done it.
 

traveller

Member
tax
Don't know if this will help but, we live in Turkey and have no UK address, we pay tax in Turkey on our Turkish bank account interest which is not declared in the UK, but our UK pensions are paid to an off shore (Isle of Man) account and these are taxable in the UK because the income arises in the UK, however when I asked the off shore bank about tax on the interest from that account they said "you are not resident within the EU so we do not have to disclose this to the UK tax authorities". Turkey and the UK have a reciprocal tax agreement so you don't pay tax on the same money in both countries.
 

Yalides

Am I pretty ?
tax
Don't know if this will help but, we live in Turkey and have no UK address, we pay tax in Turkey on our Turkish bank account interest which is not declared in the UK, but our UK pensions are paid to an off shore (Isle of Man) account and these are taxable in the UK because the income arises in the UK, however when I asked the off shore bank about tax on the interest from that account they said "you are not resident within the EU so we do not have to disclose this to the UK tax authorities". Turkey and the UK have a reciprocal tax agreement so you don't pay tax on the same money in both countries.

Quite right. This is how it is guys.
 

jcrian

Member
tax
Don't forget you have a tax free allowance in the UK which you don't in Turkey, so you maybe worse off paying tax on all your interest in Turkey.

(Tax Free allowance(UK) approx £6k rising to £9k when you are 65. Double this for a couple)
 
tax
I always thought your taxfree allowance only applys to the wages you earn.you still pay tax on the interest in an uk bank .nothing to do with your taxfree allowance. am i right?
 

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