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 from double taxation by completing the foreign pages section of thetax 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 (PDF, 640K) Opens new window

• Help with PDF files

How much foreign relief will you get?

You'll get relief on the lower of:

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 minimum tax payable under the relevant double taxation agreement.You can find a list of these rates in the notes to the foreign pages of the tax return.

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 agreed rate.

• Download the Self Assessment tax return foreign pages (PDF document 73K) Opens new window

• Download the foreign pages help notes (PDF document 187K) Opens new window

• Help with PDFs

• Contact details for all Tax Offices 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

Its 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 whether you are treated as having an ordinary resident status in the UK and your country of domicile.

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 HM Revenue & Customs (HMRC) website.

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

More useful links

• How to file your tax return online

• Planning your personal finances

• Savings and Investments - an overview