# Foreign savings tax UK explained > Benefits & tax · Last updated 4 July 2026 Canonical HTML: https://moneyguide.org.uk/benefits-tax/foreign-savings-tax-uk/ Markdown mirror: https://moneyguide.org.uk/benefits-tax/foreign-savings-tax-uk.md ## Quick answer UK residents pay tax on worldwide savings interest — declare foreign accounts on Self Assessment and may claim double taxation treaty relief for tax already paid abroad. UK tax residents must pay tax on worldwide savings interest and declare foreign accounts on Self Assessment where required. HMRC receives data from many countries under automatic exchange rules. This guide explains reporting, allowances and double taxation relief. ## Key facts - UK tax residents report worldwide interest even if tax already deducted abroad - Personal savings allowance applies to foreign interest same as UK — £1,000 basic, £500 higher rate - Claim foreign tax credit relief on SA106 supplementary pages for tax paid overseas - Failure to disclose offshore income triggers penalties up to 200% under deliberate behaviour rules ## Reporting requirements Declare foreign accounts and interest on your SA100 return and complete SA106 supplementary pages if your total foreign tax exceeds £300 or your situation is complex. Simpler cases may not need the extra form. Some countries withhold tax at source on interest paid to non-residents. A double taxation treaty may reduce the withholding rate below the default charged by that country. ## Exchange of information The Common Reporting Standard means HMRC receives account balances and income from participating jurisdictions automatically each year. Hiding offshore interest is increasingly difficult and carries severe penalties. Legacy offshore disclosure facilities have closed. If you need to catch up on undeclared past years, use the Worldwide Disclosure Facility and seek specialist advice before HMRC contacts you first. ## Practical steps Convert foreign interest to sterling using HMRC average exchange rates or the actual conversion date, and apply the same method consistently each year. Mixed methods can create discrepancies HMRC may query. ISAs cannot hold most direct foreign currency accounts. Interest on non-ISA foreign savings remains taxable in the UK even if the account is denominated in another currency. ## Frequently asked questions ### Do I pay tax twice? Double taxation treaty relief usually prevents paying full tax in both countries. You claim a credit for foreign tax paid, up to the UK tax liability on the same income. ### What about US FATCA? US accounts report to HMRC under intergovernmental agreements linked to FATCA. You must still declare the income on your UK tax return even if tax was withheld in the US. ### Are offshore bonds different? Offshore bonds use chargeable events rules rather than simple savings interest treatment. They are a specialist area and the tax treatment depends on when and how you withdraw funds. ## Primary source https://www.gov.uk/tax-foreign-income ## Related - [Personal savings allowance](https://moneyguide.org.uk/savings/personal-savings-allowance/) - [Self Assessment expenses guide](https://moneyguide.org.uk/benefits-tax/self-assessment-expenses-guide/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.