A student doctor came to study in UK from India some years ago. He had savings in his old Indian bank accounts which pay interest with no tax deducted.
Does he have to declare that interest here and pay UK tax on it ?
And if he settles here permanently after qualifying, does that change the tax situation for those bank accounts ?
Many thanks for any help received.
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Check out booklet HMRC6
Check out booklet HMRC6 (Residence, Domicile & Remittance Basis) for taxation of different types of income
If he has been here less than 7 years, there is no UK liability, otherwise it appears that he will be taxed on the remittance basis
Yes, but ...
Assuming that student doctors work for 183 days or more, he will be resident in the UK and if he came "some years ago", he will probably be ordinarily resident in the UK, but presumably remains domiciled in India.
HMRC 6, s.5.1.1, confirms that if he is UK resident, but not domiciled here, and employed in the UK, but his Indian bank interest amounts to less than £100, he is entitled to the exemption and will not be liable to UK tax on the interest.
HMRC 6, s.5.5.1, says that if his total unremitted foreign income in the year is less than £2,000, he will be taxable on the interest remitted to the UK, but will not lose his UK personal tax allowance or have to pay the RB charge.