Anyone familiar with the DTA between UK and Thailand ? Specifically, I'm trying to understand if the relief of a maximum rate of 10% UK tax rate on UK interest for a Thai resident granted by the DTA applies regardless of whether the interest is taxed or not in Thailand (it usually isn't, unless remitted here). I know it is possible to have 0% UK tax on UK interest, but there can be situations when it is benefical to claim personal allowances and let your interest be taxed, mainly if you have other income. If all your allowances are absorbed by other income, it means UK interest could be taxed at the 20% band (or even higher). So, does the DTA limit the tax rate to 10%, even if the interest is not taxed in Thailand ? HMRC Help line says yes one day, and no the next !

http://www.hmrc.gov.uk/taxtreaties/in-force/t.htm

...so if you pay tax in Thailand you can offset against tax paid in the UK.

Since the tax rate in the UK is higher it is generally better for you to pay Thai tax without deductions, costs, allowances etc and instead put those costs directly against your UK taxation.