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STOP PRESS: At Spring Budget 2024, the Chancellor announced that the remittance basis would be abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

This guidance note explains how foreign interest is taxed in the UK and how it should be reported to HMRC. It covers the treatment of bank interest, interest on loans to persons overseas, and interest on most overseas loan stock (ie interest on bonds issued by foreign governments or by companies abroad).

Some payments from offshore funds are also treated as interest and these are discussed in the Offshore funds guidance note.

For insurance products, see the Offshore bonds and other foreign policies guidance note. This note does not cover the rate of tax which is applied to the interest if it is taxable in the UK. This is covered