Money transfer

Hello, Thank you for your reply. Does this mean that savings transferred to the UK after becoming a UK tax resident, but which were earned abroad before that moment are not taxed in the UK? I suppose if the tax authorities have doubts - is the transfer of money savings OR foreign income, then this is proved by the origin of earnings, depending on the date, they either can be taxed or not taxed in the UK? Thank you, Roman

Hi Roman Korshunov

Foreign income and gains are only taxed in the UK when they, or amounts ‘in respect of’ or amounts ‘representing’ those income or gains, are ‘remitted’ to the UK.

If foreign income and gains remain offshore and are never regarded as remitted to the UK, the tax charge is effectively deferred indefinitely.

RDRM31030 - Residence, Domicile and Remittance Basis Manual - HMRC internal manual - GOV.UK (www.gov.uk).  

If this is income that has already been remitted/declared to the UK in the past and you are simply transfering to a UK account now then there is no additional tax charge on the transfer. 

Thankyou.

Regards.

Dear HMRC, Thank you for your reply. Sorry for asking so many clarifying questions, but it's still unclear. There was a question on the previous page: "I am planning to buy a house here, but I need to bring my money from Turkey(around £50000). Some of this money is my savings, some part is my share from a land that my family sold some time ago(tax paid in Turkey). I am planning to transfer this money to my UK bank account via Swift. I am wondering if I need to pay any income tax because of this transaction?" With the following answer from HMRC Admin: "I can confirm that the movement of money from an overseas bank account to a UK bank account is a non-taxable transaction." As far as I understood, this type of income hasn't been remitted/declared to the UK. Why is such a transfer (as an example of foreign income/savings/gains) not taxed if it was not declared in the UK? Best regards, Roman

Hi,
 

Dear Roman, HMRC requires UK residents to declare (via a Self Assessment tax return) their worldwide income and gains. However, as was explained previously, the transfer of funds from an overseas bank account to a UK bank account is not in itself a taxable transaction, and does not have to be reported to HMRC (although any interest arising when the funds are deposited in a UK bank account should of course be declared to HMRC).

Thank you.

Hello, my father has received an inheritance in Finland and payed all the taxes and the money is already in his bank account. He wants to send me part of this money. Can he just transfer it to my UK bank account? Do I need to pay taxes and is there a limit? Thank you

Hi,
 

Please note (a) that cash gifts are non taxable and (b) yes, your father can transfer the money to your UK bank account.

Thank you.

Dear Madam/Sir, Me and my partner are british and lived in france for 8 years. We wish to have our personal funds transfered from our french bank to Uk bank. +10k EUR. Do we need to declare this to the british authorities? Many thanks Pipi

Hi, I moved to the UK 6 months ago and am a UK resident for tax purposes (although not a citizen). I have some bank savings in the US from previous jobs which I wish to transfer to the UK to purchase a house. Will I have to pay any taxes on or declare these transfers in my tax filings?

Hi PiPi,

There are no tax implications regarding the transfer of funds from an overseas bank account to a UK bank account. You would however have to declare any interest arising.

Thank you.

Hi Grubbersingh,

As a UK resident, any foreign interest should have already been declared to us.
The capital in the account does not need to be reported, even if brought to the UK unless the remittance basis has previously been claimed on this income.
Tax on foreign income

Thank you.

Is there any limit on amount of capital (e.g. bank account savings) that can be transferred from personal savings overseas into the UK? Is there any requirement for declaration of such amount transferred on the self assessment tax filing? Thanks

Hi,

There is no Income Tax on the capital transfer.  

You may be subject to Income Tax on the interest accrued from the UK account. 

Thank you.

Dear Madam/Sir, I am live UK around 6 month, I have a job for and rent a house. I want to know If my parent or my brother transfer the money to my oversea acc. Then i change it to GBP and transfer to my UK bank acc. Basically this money is use for help my live and help for buy a house. May i know this will have any tax problem? Thanks, Daniel

Hi,
 

If the moeny being transferred is a gift then you may be liable to tax on interest that it generates. If the money is from a rental propery, you need to declare this : Examples of how to work out Income Tax when you rent out a property   . Thank you.

Hello HMRC Team, I am a Dual National with British and United States citizenship. I left the United Kingdom in 2011. I have been a resident of the United States for 11 years and have returned to the UK for only short visits over time. I have money that I have put away over the pandemic and I have already been taxed on this money in the United States. I plan in the near future to move back to the United Kingdom. My question is this. I would like to move this money to the UK and need to know if I will need to pay UK taxes or declare it when I do? I will be transferring the money prior to moving to the UK as I close bank accounts and tie up my affairs in the United States. This is money in a bank account and is not in investments or any asset that gains in value. My research shows that, because I have been out of the UK for over 11 consecutive years and have not earned money in the UK for the whole of the 11 years I have been a non-uk resident, I should not have to pay taxes on this money again. Can you help me to clarify this? I plan to use the money to buy a house once I am back and to restart my life in the UK, so it would be a huge benefit if I don't have to pay additional taxes on this money. I understand that the UK and US also have a tax treaty to help with double taxation.

Hello hmrc, If dad wanted to transfer a large amount of cash into bank would he have to pay tax on it?

Hi Louise,

You will not pay tax on the capital that you transfer. However, any interest that it generates may be liable to Income Tax in the UK.

Thank you.

Hi,
 

There are no tax implications transfering money as a gift.  However you may be required to pay tax on any bank interest you accrue on the funds.

Thank you.

Hello Team, I live another country from UK. I worked for a UK company by the agency of a USA company as an remote worker in between 01/2021 and 02/2022. Then I started to work same UK company without the agency and made a contract between the company and me starting from 02/2022 till now. I applied the Skilled Worker Visa and I plan to migrate to UK in August then I will be resident. Do I have to pay tax for my previous income that I mentioned above? Should I declare my capital when I move it to a UK bank account? Thank you so much.

Hi MEHMET SAHIN, 

Please refer to guidance at:

Residence, domicile and the remittance basis: RDR1