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What counts as overseas income?

Income counts as 'overseas income' if it comes from outside England, Scotland, Wales and Northern Ireland. So income from the Channel Islands and the Isle of Man counts as overseas income too.

Overseas savings and investment income includes:

If you've already paid tax in the country of origin

If you find that you're being asked to pay tax both in the country of origin and in the UK, you may be able to claim relief - ‘foreign tax credit relief’ - from double taxation by completing the foreign pages section of the tax return. The UK has signed many double taxation agreements with other countries. These are arrangements that aim to prevent double taxation.

• More on double taxation agreements and a list of countries Opens new window

How much foreign tax credit relief will you get?

You'll get relief on the lower of:

So if the foreign tax you're due to pay is more than that payable as UK tax, you'll still only get relief on the amount of UK tax payable.

Even if there is no double taxation agreement between the UK and the other country, relief may still be given for the foreign tax payable (called 'unilateral relief'). Contact HM Revenue & Customs (HMRC) if you need further advice.

• Contact HMRC Opens new window

Foreign tax on dividends and interest

Double taxation agreements usually set out a rate of tax (called 'withholding tax') that a country can charge on a UK resident receiving certain types of income from that country - for example, dividends from companies or interest on savings.

Any claim that you make for relief against UK tax must be restricted to this amount. You can find a list of these rates in the 'DT digest' - Digest of Double Taxation Treaties.

If you've paid foreign withholding tax at a higher rate than is listed for that type of income, you'll need to approach the overseas tax authority for a refund of the tax paid above the withholding tax rate.

• Download 'Digest of Double Taxation Treaties' (PDF, 185K) Opens new window

• Download 'Foreign notes for Self Assessment tax return' (PDF, 187K) Opens new window

• Help with PDF files

• Contact HMRC Opens new window

Rent from overseas property

If UK tax is due on rental income from an overseas property, you can deduct certain expenses and allowances in the same way as you can from income from UK property.

You can claim relief for tax paid in the other country in the foreign pages section of the tax return.

• Tax on overseas property lettings

Reporting your overseas income

You must report your overseas income on the foreign pages of your tax return.

Effect of residence, ordinary residence and domicile on your tax liability

It’s possible that you may not have to pay tax on your overseas income. This will depend on whether you are classed as ‘resident’ in the UK for tax purposes in a tax year. The amount of income on which you pay tax may also be affected by your ‘ordinary residence’ and ‘domicile’ position.

You can read more about how your residence, ordinary residence and domicile can affect the UK taxation of income from your overseas investments and savings interest on the HMRC website.

• HMRC6 - Residence, ordinary residence and domicile - more detailed definitions on HMRC Opens new window

More useful links

• How to file your tax return online

• Planning your personal finances

• Savings and Investments - an overview

Useful contacts

• Money, tax and benefits contacts