Paying UK tax on interest ?

"Colin Wilson" wrote in message news: snipped-for-privacy@news.individual.net... I have some loan notes with Iberdrola following the takeover of Scottish Power.

Interest was given recently, and the spanish gov. took 18% "witholding tax" that they apply to non-residents of Spain, which leaves me to pay another 2% tax to the UK gov.

It's only a small sum left to pay (~16) but does anyone know how I actually make the payment ?

I have some sort of certificate from Equiniti to say 18% has been taken already which I guess will have to be submitted somehow as proof to avoid dual taxation, but there are warnings about not losing it / costs to replace it.

Knowing what the UK gov. is like for losing stuff, can I send a copy of this paperwork ?

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You self assess. You don't send any original paperwork to HMRC unless they conduct an audit.

As to how you actually account for this payment, you need the foreign income pages (and notes) and follow the instructions (I've never done this so I can't answer specific questions).

te

But the witholding tax is taken by the Spanish govt. Is it assumed double taxation agreement will apply and Spanish govt. gets the withholding tax, the UK govt. gets any remainder..? Otherwise HMRC might want to claim the 18%.

Sounds complicated...

But the witholding tax is taken by the Spanish govt. Is it assumed double taxation agreement will apply and Spanish govt. gets the withholding tax, the UK govt. gets any remainder..? Otherwise HMRC might want to claim the 18%.

Sounds complicated...

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don't worry about it. Assume that you can decuct the sum withheld, follow the instructions and fill in the boxes.

The chances of anybody bothering to check is near zero and as long as you have made a reasonable stab at it there wont be any penalties if they do.

tim

Thanks for the replies chaps - never had to fill in a self-assessment form before (probably don't earn enough !)

A small update FWIW, but it might be use to someone else - I spoke to the tax office earlier today, and they said to just write in to inform them of it, but due to the low "value" of the sum involved (only around £14-£16), they wouldn't be asking for it.