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Posted Tue, 13 Sep 2022 16:46:13 GMT by John Gage
Hi, I have money deposited in a foreign bank account generated outside the UK in the past and reported to HMRC on a remittance basis so that none of it was ever transmitted into the UK and no income has been generated on it. Revolut is an e-money institution in the UK but they do not have a banking licence yet. Since Revolut offers competitive FX rates I want to wire foreign money from the off shore bank account into my Revolut electronic wallet for them to convert it and immediately send the converted funds back to the same foreign bank account. Would that be considered transmitting money into the UK (and subject to income tax on the remittance)? Any clue would be greatly appreciated.
Posted Wed, 14 Sep 2022 16:32:03 GMT by HMRC Admin 10
Hi
This would not be considered as transmitting the money to the UK and would not attract tax on the remittance basis.
HMRC would only be concerned about any interest arising from the transactions.
Thankyou.
Regards.
Posted Thu, 15 Sep 2022 12:35:21 GMT by John Gage
Thank you so much this is most helpful. I have two follow on questions if possible: 1. If in the scenario above I were to use my online brokerage account with Interactive Brokers so that non GBP funds earned off shore on a remittance basis were to be wired from an off shore bank account onto the IBKR online platform, converted into another currency (also non GBP) and the proceeds wired out to the off shore bank account, Would that constitute remittance? 2. If the IBKR account already has funds sourced from an on shore UK bank account after fully paying UK taxes, would the wire to the platform, FX conversion and wire out described above be considered "mingling" funds and thus taint the on shore funds? If I use an IBKR clearly separated sub account would that work? Thank you in addvance.
Posted Wed, 21 Sep 2022 10:21:15 GMT by John Gage
Hi, and thank you for your reply. With apologies I've read the notes several times and focused on "...Foreign income and gains are remitted to the UK if: they are brought to, or received in or used in the UK". I am not sure whether using an Interactive Brokers account solely to convert one currency to another be considered that funds are "brought" to or "received" in the UK? (the funds are clearly not used in the UK). Thanks again.
Posted Mon, 26 Sep 2022 13:15:42 GMT by HMRC Admin 17

Hi,
 
Pleae see further guidance at :

Remittance basis 2022 (HS264)   .

Thank you.

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