Tax on Foreign Income

Tax on Foreign Income 

You may need to pay UK Income Tax on your foreign income, such as: 
  • wages if you work abroad 
  • foreign investments and savings interest 
  • rental income on overseas property 
  • income from pensions held overseas 
Foreign income is anything from outside England, Scotland, Wales and Northern Ireland. The Channel Islands and the Isle of Man are classed as foreign.  

Working Out if you Need to Pay  

Whether you need to pay depends on if you are classed as ‘resident’ in the UK for tax. 
If you are not UK resident, you will not have to pay UK tax on your foreign income. 
If you are UK resident, you will normally pay tax on your foreign income. But you may not have to if your permanent home (‘domicile’) is abroad. 

Reporting Foreign Income 

If you need to pay tax, you usually report your foreign income in a Self Assessment tax return. But there is some foreign income that is taxed differently

If your Income is Taxed in More Than One Country 

You may be able to claim tax relief if you are taxed in more than one country.  
If you have not yet paid tax on the foreign income, you may need to apply for a certificate of residence to prove you’re eligible for relief. 

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