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tax liability on interest


g8vkv

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Hello,

Sorry if this has been asked before, but Newbie speaking here!

I'm getting to grips with my first tax return - doing pretty well considering I have a severe allergy to bureaucracy.

Firstly our circumstances - we arrived to reside permanently in France (Var) on 22nd June 2007. So I'm calculating our tax on the basis of income from that date until 31/12.

The (main) thing I'm unsure about is how much interest to declare on some UK savings accounts, specifically a case where we closed accounts in Sept. 2007 and the accrued interest was paid on the closure. These accounts 'normally' got interest paid annually on 1st April, so the closing interest covered both 'non-taxable' (April to 21 June) and 'taxable' (thereafter)  periods.

So - should I declare the 'taxable' proportion (i.e. roughly 2/3) of the total interest - or is the date the 'gain' was realised the significant factor, in which case I need to include the whole amount.

I must say my inclination is the former - but would like to know if there's any regulation which covers the situation.

I know this sounds a bit nit-picky, but I've always found it wise to be at my pedantic best with tax people.

Many thanks in anticipation.

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You should declare all the interest earned between the date you moved here and the account closure, afaik.  Not always easy to figure out, in my experience!

The allergy to bureaucracy is very common, and not a great thing to suffer from in France.[:-))]

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By all means get the figures correct but by the very nature of your first return being a split year the figures won't be looked at too closely.

Appear to be existing on tuppence per week from your second year onwards then beware!!  [:D]

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