Money transfer

Dear Sir/Madam, I've been resident in the UK between 2009 and 2019. I then left the UK on April 2019 and lived in Italy as resident for 5 years, without spending any day in the UK during this time. During these 5 years in Italy I have worked and I have also bought and sold a house, so now I have 120k in saving in my Italian bank account. I would like to move back to the UK in January 2024 and become resident again, and I would like to transfer all my savings to my UK bank account, which has already been taxed in Italy during the 5 years. I would like to know if this transfer has any tax implications or if I need to declare anything to HMRC? Best Regards, Mark

Hi, I would like to ask if I and my friend need to pay any gift tax under the following situation: My friend and I are both UK taxable resident and live together. As he sometimes pays for the expenditure first when he goes supermarket, then I later transfer back money to him to share part of this expenditure, do either he or me need to pay any tax, including gift tax?

Hi, I would like to ask if I help my friend to pay his credit card bill of £8000, I pay him by bank transfer, is it counted as a gift? In the alternative, if I help him to pay directly to the Credit card company, will it still count as a gift?

Hi Dan Skale,
You pay Capital Gains Tax when you sell overseas property if you are resident in the UK.
However, there are special rules if you are resident in the UK but your permanent home ('domicile') is abroad.  
Chapter 9 in HMRC’s guidance on ‘Residence, Domicile and the Remittance Basis’ explains the rules for bringing income or gains to the UK.
Tax when you sell property Skip to contents of guide Contents                                                                      
Tax on foreign income                        
Guidance note for residence, domicile and the remittance basis: RDR1
Thank you. 

 

Hi Mark Lambert,
You would not pay tax on the actual capital but would need to report any interest or dividends that this then generate.
Thank you. 

 

Dear HMRC team, During many years of non UK residence, I have sometimes received money from work in my UK bank account. The work was of course carried out entirely outside of the UK, even if the payment arrived in the UK bank account. I wonder if I should have reported this income to the HMRC even if I was resident out of the country and, more importantly, if any tax was owed to the UK. To be said is that the totality of this income never reached the personal allowance for any of the years under consideration. 

Hi Tsz Chun,
No.  There is no tax liability in transactions of this nature.
Thank you. 

Hi bobo 1,
There are no tax implications on the giving or receipt of cash gifts, but you may wish to speak to inheritance tax regarding any inheritance tax implications.
Inheritance Tax: general enquiries 
You may also want to review the guidance at:
How Inheritance Tax works: thresholds, rules and allowances
Thank you. 

Hi Mark Lambert,
Please refer to guidance here: 
Tax on your UK income if you live abroad
Thank you. 
 

Hi! My parents gifted me some money that are currently on my bank account in Italy. I want to transfer it to the UK in my bank account and I am an UK resident and employed in the UK. Do I need to pay taxes on it or notify HMRC in anyway? Thank you!

Hello, I have some money in an account in Italy that my parents gifted me and I want to move them to my account in the UK. I am an UK tax payer. Do I need to report it? Thank you!

Hi,

There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax.  

Further guidance can be found here.

Tax on savings interest

Tax on dividends

Thank you.

Dear HMRC Team, I am in the process of returning to the UK following a period of temporary non-residency. After reviewing the RDR3 guide, I encountered some difficulty in determining whether the capital I intend to remit to the UK falls under the category of income that may be subject to taxation. During my non-resident period, I accumulated savings from overseas work, parental gifts, and a property transaction that involved purchasing and subsequently selling a house after a couple of years of ownership. Given that these earnings were exclusively acquired during my non-resident status, could you please provide guidance on whether this capital can be transferred to my UK bank account without incurring tax obligations? Thank you for your valuable assistance. I eagerly anticipate your response. Sincerely, 

Name removed admin .

Hello, My wife and I moved to UK from Hong Kong on July 14. We haven’t worked since April 1 this year and don’t have work plans thru out the current tax year. Before arriving in UK we liquidated all assets into cash. All required taxes are paid in Hong Kong already. Given we are still not UK tax residents, if we transfer this capital from our Hong Kong banks to UK banks / financial institutions, is there any tax implications? Do we need to file capital proof to HMRC? We’ve had investment gains in UK starting from August. We plan to apply for split year arrangement. If my understanding is correct, we need to file to HMRC all saving interests and capital gains (if any) arising from both Hong Kong and UK starting from the day we arrived UK, which is July 14. This arrangement won’t have any tax impacts on the money transfer mentioned above. Am I right? Look forward to your input. Many thanks.

Hello, my brother would like to gift my mum 250k. They are both UK citizens/residents. Will she have to pay tax on the gift? The money will then be passed onto me within a few days (but I live abroad and know the tax implications of where I live.) Thank you. I've seen the gift from parents forum but this is from son to mother.

Hi,

Gifts of money from children to parents have no income tax implications, but any interest or dividends generated may be taxable. See link below:                        

Tax on savings and investments: detailed information

Thank you.
 

Hi Trosten.Gudil,
Based on your information you appear to be UK citizen so yes you can transfer the capital to a UK bank and it is then only any interest or dividends that this then generates that will be taxable.
The remittance basis would only appy if you are resident but non domicile and this then has different rules.
Remittance basis 2023 (HS264)
Thank you.

Dear HMRC Admin, Thank you for your comprehensive response. I apologies for any lack of clarity in my previous message. I am an EU citizen with Settled Status who, after residing in the UK for 9 years, spent 4 years as a non-resident. I am about to relocate to the UK and will be classified as a temporary non-resident. Upon my return, I plan to transfer capital consisting of overseas earnings from work, parental gifts, and a property transaction involving a purchase and subsequent sale within 2 years. After a thorough review of both the "Temporary Non-Resident" section in the "RDR3 guide" and the "Remittance Basis 2023 (HS264)," it would appear that neither of these is applicable to my situation. The former because the capital was exclusively acquired during my last 4 years as a non-resident. The latter because, despite being non-domiciled, I have never claimed the remittance basis in the past, and I have no intentions of doing so in the future. Could you please provide guidance on whether this capital can be transferred to my UK bank account without incurring tax obligations? Thank you for your valuable assistance.

Hi lprsc Pang,

Capital losses can be reported in the relevant pages (SA108) of your Self Assessment tax return. If you are not registered for Self Assessment, you can write to HMRC to claim the capital loss instead. Losses can be carried forward and used to reduce any capital gains arising in future years.  As regards the chargeable assets threshold of £49200, please refer to the SA108 notes.                                

Capital Gains Tax: what you pay it on, rates and allowances                                               

Capital Gains Tax summary notes

Thank you.

Hi HMRC Admin 32, Thank you for your reply but I would like to clarify on my first question: We plan to transfer money from HK bank to UK bank. Those money is our capital accumulated in HK over the years. Just wonder, after we arrived in UK (mid July), will there be tax implications if we transfer those money from HK to UK now? We are not a UK tax resident now. Thanks again.