Bank and building society interest - Armed forces and diplomats
Armed Forces
Like anyone else, a member of the Armed Forces must be ‘ordinarily resident’ in the UK, and not expect to pay tax, to complete a form R85 (PDF 72K). And the spouse, civil partner or children of a member of the Armed Forces must be ‘ordinarily resident’ in the UK, and not expect to pay tax, to complete a form R85.
UK diplomats
Like anyone else, a UK diplomat must be ‘ordinarily resident’ in the UK, and not expect to pay tax, to complete a form R85. And the spouse, civil partner or children of a UK diplomat must be ‘ordinarily resident’ in the UK, and not expect to pay tax, to complete form R85.
Foreign diplomats
Like anyone else, a foreign diplomat must be ‘ordinarily resident’ in the UK, and not expect to pay tax, to complete a form R85. And the spouse, civil partner or children of a foreign diplomat must be ‘ordinarily resident’ in the UK, and not expect to pay tax, to complete form R85.
Residence Status
If you are a member of the Armed Forces you are classed as being a Crown Servants. Being a Crown Servant does not prevent you from being treated as ‘not resident’ and ‘not ordinarily resident’ in the UK for UK tax purposes when you are posted abroad.
The same residency rules that apply to everyone else in the UK apply to Crown Servants and also their spouses, civil partners and children. And it is your residency status that determines whether interest paid by a UK bank or building society should be paid with tax taken off or not.
If you are ‘not ordinarily resident’ in the UK you may be able to receive your interest without tax taken off by your bank or building society by completing form R105 (PDF 430K). But not all banks and building societies accept form R105 (PDF 430K). You will need to check with your own bank or building society.
To be eligible to complete form R85 (PDF 72K) the saver must;
- Be ‘ordinarily resident’ in the UK.
- Not expect to pay tax.
To be eligible to complete form R105 (PDF 430K) the saver must
- Be ‘not ordinarily resident’ in the UK.
The rules for determining residency status are explained in booklet IR20 (PDF 160K).
