tax on interest

[going east]

i know this has been covered before, but how much tax do you have to pay on interest gained from your capital invested
eg £100,000.00 invested for a year will give approx £18.000 interest, but how much tax is payable and is it taken at source?
(i have used pounds and round numbers for easy calculation, it would obviously be invested in turkish lire)
we hope to move out later this year and forgot to allow any tax payable in our calculations.!!!!!

[valentine]

We bank at Finans and interest is paid at 18% gross, 15% net therefore 3% tax which is deducted at source.

[going east]

thnaks for the info, can now re-calculate the figures

[Crabbit]

The Tax rate on interest is 15% deducted at source.
If you have £100,000 to invest you should ask for at least 20% interest, you`ll get it easily.

Crabbit

[going east]

wish i had £100,000 to invest, i was just using this number for easy calculations, thanks for the info

[lizw]

Please dont think im being greedy  - but i have questioned this at Finans and didnt get a proper answer - wondered if anyone knew.  Why are we paying tax on our interest as expats who are investing off shore - surely we can get this Gross and declare in Uk if wished. Really im JUST interested!!  Thanks

[tribalelder]

IF you could do this you would probably pay tax at a higher rate in the UK....No contest.

[Crabbit]

As with any offshore account, you pay tax in the country where said money is invested.

Crabbit (not a financial consultant.    )

[starman]

can you tell me where in the world would offer 18,000 GBP back on 100,000 GBP? I thought the rate was only around 5% not 18%.

[valentine]

You are correct Starman, perhaps the assumption was that the £100000 would be converted to Turkish lira. It would be quite fun if you could get it on sterling wouldn't it?: