Tax on interest?

Thanks a lot for the answer. I need to restate my question:

I am a UK resident, but not domiciled here. Do I have to pay tax on interest I gain abroad on? I am not paying any tax on the interest in the country where the money is deposited, because the money is invested into a fund which is tax-free under EU regulation. This is perfectly legal.
Now since the UK is also part of the EU, it would seem fair that even if I bring the money to the UK, it should not be taxable.

Thanks again.

EU tax law is not in force in the UK> As I have said before, if you bring the interest to the UK it is taxable here. If you leave the interest in Luxemburg, then its not taxable in the UK.

I think that you should just be able to ask the company you have the money deposited with - they would have to know the law if one of the stated points of the account is that tax is not payable on interest in the EU!

As a UK resident, you are liable to tax on your worldwide income. However, as you are not domiciled in the UK, you are only taxable on this interest income in the UK if you remitt the interest into the UK. If you do not bring it to the UK, it is not taxable.

If you need the money in the UK, there are ways of (legally) arranging it so that no tax is due.
See an accountant.

I think its possible that you may be taxed on a remittance basis. Check http://www.wealthprotectionreport.co.uk for a full answer. I'm sorry I can't help more but I have enough trouble getting my own tax situation straight!