Money transfer

Hiya, We have recently moved to UK from overseas and we plan to buy a house when we settle down. Do I need to pay any tax if my father-in-law transfer £500K to our UK bank account to support our house purchase under our own names and general living expenses in UK? Thank you. 

Hi,

The gift/transfer of money is not subject to UK income tax.

Thank you.

Good evening, I have relocated from NZ to the UK, and I want to transfer my money from my NZ account to my UK account. While in the UK, my NZ account earned a small interest (less than 10 GBP) and I have not received foreign income at all. My question is, do I need to pay any tax on the transferred money or the interest of my NZ account? Thanks in advance

Hi Pablo

You would not need to declare or pay any money on the transfer of the account or any capital in the account.

However as a UK resident any foreign interest received needs to be declared to the UK, although if only £10 it may not be taxable due to the savings allowance:

Tax on savings interest

and

Tax on foreign income

Thankyou.

Regards.

Hello, I and my family will move to UK in November this year. We haven't been to UK before, and we will use half year to settle in UK (rent a house and find a school for children). We will have no income in UK or globally in the first half year after we move to UK. Will I be a tax-resident in the year 2021-2022? Thank You.

Hi,

To determine your tax residency status, please see the guidance here:

RDR3 Statutory Residence Test

Thank you.

Hi, I've relocated from Turkey to the UK recently, and I want to move my savings from my bank account in Turkey to the UK but unfortunately my account in Turkey doesn't allow international transfers. I have my uncle in Turkey, so I'm thinking of transferring my savings to his account in Turkey and then he can make the international transfer from his account to my UK bank account. Will the money transferred this way be subject to income tax? Thank you.

Hi,
 

There will be no income tax due on income from the account on transfer but if the income generates any interest then this would be subject to tax. You will still need to check with the relevant banks for any fees they may charge.  Thank you.

Dear HMRC Admin, I am UK resident and British/Italian citizen. My mother (Italian citizen, resident in Italy) wants to send me a sum of money (about £200k) as a gift to help me buy a house in the UK. Could you confirm that I do not need to inform the HMRC about this bank transfer, please? If so, is it sufficient to send this money using "gift" as reference? Also, when my mother dies, will the sum above be considered by the HMRC for calculating any of tax inheritance or is tax inheritance only calculated and applied in the country where the person dies (in this case Italy, so the HMRC will not do anything about it)? Thanks for your help Regards Piero

Hi,
 

You would not need to pay any income tax on this amount but if you gained any interest in the UK while it was in your bank account then this may be subject to tax. You may, however, wish to speak to inheritance tax regarding the gift to see if there is any tax due there. See links: How Inheritance Tax works: thresholds, rules and allowances       and : Inheritance Tax: general enquiries   . Thank you.

Dear HMRC team, I'm a French national and I've permanently lived in the UK since 2012. I now have the settled status. Back in 2019, I have transferred some money from my French bank current account to my UK bank current account. Very similar to the people in this forum. Based on my knowledge and as you clearly states to other people in this forum, I thought that transfer of personal money from France to the UK was not subject to specific declarations or income tax income. However, I have recently received a letter from HMRC telling me "to take action now to bring your UK tax affairs up to date". I'm asked to tell you about all the UK tax I have to pay on offshore assets, income and gains and to make a disclosure using your Worldwide Disclosure Facility. When I read the advice you give on that forum and the content of the letter I've received, it seems to me that it is in contradiction. I would be surprised that people have saving not originally coming from either income, assets or capital gain. If you could please explain the purpose of this letter and the reason for sending it, it would very helpful? Thank you very much in advance.

Hi,
 

If there is no indication on the letter as to why you have been sent this then you may wish to contact the number at the top of the letter, which will be the Worldwide Disclosure team, to see why they are requesting a declaration. You would not need to pay income tax on the transfer of money but you may need to pay tax on any taxable income accrued abroad, such as capital gains or interest/dividends. See link: Offshore Disclosure Facility        . Thank you.

Hello, I am a greek citizen and UK resident. My mum has made a lifetime transfer of property in Greece to me which I sold. All taxes have been paid in Greece. I intend to sent this money from my greek bank acount to my uk bank account but I do not know if I'm going to be taxed. Do i need to report the money to HMRC when they are transferred in my bank account and will I be taxed on them? Thank you

Hi.

If the property was in your name when this was sold, then you may be subject to Capital Gains Tax on this if you are UK resident. There is no Income Tax due on the transfer of money itself.

You can find further guidance on Capital Gains here:

Capital Gains Tax

If you have already paid Capital Gains Tax on this in Greece, then you can advise us of this and claim for foreign tax credit relief so you are not taxed twice on the same income.

This would be done through Self Assessment.

Self Assessment tax returns

Thank you.

I am a resident PhD student in the UK paid as a research assistant on a part-time basis. I receive an additional scholarship from my domicile country (Serbia) that is tax-free and the two countries have a double taxation agreement. Do I have to report to HMRC if I transfer the whole scholarship to my UK bank account in the same tax year and it exceeds the non-taxable £2000 allowance?

Hi,
 

Bursaries, grants and scholarships are generally not taxable in the UK. These would therefore not need to be reported. The transfer of the funds would not need to be reported, however if any interest was generated from tha bank account where the funds were held, these would need to be declared.

thank you.

Hi, I have recently moved to the UK from overseas and has become a UK resident. My previous employer from overseas need to pay my Terminal Gratuity payment from my previous job. Since I am in the UK, they will transfer it to my UK bank account. This was earned prior to me becoming a UK resident and is from my previous job in overseas. My question is whether I need to declare this to HMRC and would it be taxable? Thank you Ahmad

Hi,
 

Employment income is taxable in the period in which it is paid so if this is paid when you are UK tax resident, then it will be taxable in the UK. You can however also let us know of any tax paid by your oveseas employer and we will give credit for this so that you are not charged twice on the same income.

Thank you.

@HMRC Admin 17, Thank you very much for the response. The Terminal Gratuity is tax exempt within the country that I was working so if I had received this overseas, it would have been tax exempt. Would it be considered non-taxable here as well when I receive it in my UK account?

Hi,
 

If this is classed as a redundancy payment then the first £30K would be tax free in the UK. Guidance on taxable lump sum payments from employers can be found here. If this is not a redundancy payment then it may be taxable in the UK. See link: Employment Income Manual  . Thank you.