Answers · UK 2025/26
How do I report foreign bank interest on my Self Assessment return?
Declare foreign interest on the 'Foreign' supplementary pages (SA106) of your Self Assessment return. Report the gross amount in GBP (convert at the exchange rate when received), then claim foreign tax credit relief for any withholding tax already paid overseas, subject to the Foreign Income rules.
Full answer
If you are UK resident and receive interest from an overseas bank account or foreign savings bond, it is taxable in the UK under the arising basis (for most residents) or remittance basis (for non-domiciled residents who have claimed that basis). **Which pages to use** Complete SA106 (Foreign) pages alongside your main SA100 return. The interest goes in the 'Interest and other savings income from overseas savings' section. **Converting to GBP** Use the exchange rate at the date you received (or were entitled to receive) the interest. HMRC publishes official yearly average rates, but spot rates on the date of receipt are also acceptable. **Double Taxation Relief** If the foreign country withheld tax (e.g. 15% US withholding tax, 26.375% German Kapitalertragsteuer), you can claim Foreign Tax Credit Relief on SA106 to offset this against your UK tax liability. The relief is limited to the lower of: the foreign tax paid or the UK tax attributable to that foreign income. **Common reporting standard auto-population** HMRC may pre-populate some foreign income from CRS data, but you should not rely on this -- check and supplement manually. **Personal Savings Allowance applies** Your PSA (£1,000 for basic-rate, £500 for higher-rate taxpayers in 2026/27) covers foreign savings interest in the same way as UK interest. Only the amount exceeding the PSA is taxable. **Penalties for non-disclosure** HMRC actively uses CRS and FATCA (for US accounts) data to identify undeclared foreign income. Penalties for failure to declare range from 30% to 200% of the tax due for offshore income, depending on whether the territory is a 'category 1, 2 or 3' jurisdiction. Voluntary disclosure before HMRC makes contact will substantially reduce penalties. **Deadline** SA106 must be filed by 31 January 2028 for the 2026/27 tax year (online) or 31 October 2027 (paper).
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.