Al9

My mother has recieved a letter from inland revenue, stating that they believe she recieves interest payment from a bank overseas, and that the cant find any tax reference etc concerning that, and to respond immediately. Now my mother in 2006 sold her house and put the money in jersey, but she ticked the box that says if you want tax to be paid in it automatically, and she has spoken with them today and they confirmed they do take tax off the interest, So question would be why is inland revenue writing for?

Chip

Why not phone the IR and asked them.

David Lock

And/or the bank.

Do they speak English over there?

She may even be due some money back

dl

Leslie

They will try any trick if they think they can make a bit more tax out of you.

Les

speedking

Check.
not surprised
Better had.

She still has to declare the interest income because tax will be deducted at the basic rate. The interest may push her up into a higher tax bracket and some tax would be owing.

baser999

iTrader: (2)

Agreed - if she's liable to UK tax she has to disclose all her income, regardless of where its derived, even ifs it been taxed at source or subjected to overseas tax. She'll then be taxable upon that income but be due a credit for any overseas tax suffered/withheld. This is my understanding of the position, unless its changed in recent years.