Hi there,
From what I understand US bank accounts (unlike UK accounts) don't tax interest at source. This gets taxed on your 1040 form.
If you earn US interest and it is such a small amount that it is covered by the US personal allowance (I know it would be outside the FIE as it is US source income) and hence no tax is payable, is this counted as 'untaxed' and subject to tax on the UK return or is it counted as 'taxed' and eligible for UK credits as it was actually eligble for taxation but the personal allowance happened to cover it?
May seem like a stupid question! Any feedback apprciated.
Thanks
