Money transfer

Hi, small correction about my previous post: I am Italian and now I live and work here in UK. I have an Italian bank account used when I was working there for my salary at the time. The account does not generate any interests. Also Sometimes my father gifts me some money and send them to me on this account. Do I need to declare the account and those gifts?

Hi Everton Dantas,

There is no double taxation agreement between Brazil and the UK, so income could be taxable in both countries. However, unilateral relief under DT3901 can be applied to interest received.  
DT3901 - Double Taxation Relief Manual: Guidance by country: Brazil: Admissible taxes

You will need to review your residence, domicile and whether the remittance basis can be applied. HMRC cannot advise on whether you are UK tax resident for the year or not. You will need to use the Statutory residence test to determine this on your own personal circumstances.

Guidance can be found here

RDR3 Statutory Residence Test

Tax on foreign income

Savings are themselved not taxable, but interest arising from the savings is. Even if you have paid tax on this in Brazil, it may also be taxable in the UK. Where unilateral relief applies, a foreign tax credit can be claimed.

Thank you.

Hi,

There are no Income Tax implications on the receipt of a cash gift unless the income generates interest or dividends.

These would then potentially be subject to tax.  

You can see more guidance here:

Tax on savings interest

Tax on dividends

Thank you.

Hi, I am living in Hong Kong and planning to work in UK soon. I would like to ask the following questions when I become taxable in UK. 1. My parents who are Hong Kong residents and they live in Hong Kong, may transfer money to support me the daily need/ buying house, do I need to pay any tax and make any form of declaration? 2. I may keep a Hong Kong bank account with my saving of previous salary in Hong Kong (in HKD), do I need to pay any tax if I transfer those money from my Hong Kong bank account to my UK bank account (in GBP)? Thank you.

Hi Snits88,

No, you do not need to declare these. 

There are no Income Tax implications on the receipt of a cash gift unless the income 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.

I am uk resident. My late father has left me an investment inheritance in the EU. (Stocks and shares) The account is in 4 names, my mother, and 2 siblings. There is no income transferred to the uk. It stays aboard. Do I need to pay tax on it?

Hi Tsz Chun,

There are no Income Tax implications on the receipt of a cash gift unless the income 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.

Hello, I have UK residence status, May 2021, and will be tax residence in February 2022 once I start working. I have saving account in Qatar which is my savings from my previous earnings. This amount was earned before April 2020 and in my Qatar bank account since then. I would like to transfer it to my UK account. Is this amount taxable?

Hi Laura G Smith, 

There are no income tax implications on the receipt of a cash gift unless the income 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, 


 

Hello, I have UK residence status, May 2021, and will be tax residence in February 2023 once I start working. I have saving account in Qatar which is my savings from my previous earnings. This amount was earned before April 2020 and in my Qatar bank account since then. I would like to transfer it to my UK account. Is this amount taxable? *Amendment done for February 2023, typo error corrected.

Hi, I am living in Hong Kong and planning to work in UK soon. I would keep a Hong Kong bank account with my saving of previous salary in Hong Kong (in HKD), do I need to pay any tax if I transfer those money from my Hong Kong bank account to my UK bank account (in GBP) after I become taxable? Thank you.

Hi Ruken G,

Income Tax in the UK is normally calculated using the arising basis. This means a person is taxed on their income and gains in the year they arise.  

You will need to review the following guidance and take the tests at RDR3, to determine your situation. From that, you will be able to work out if your Qatari income is taxable in the UK. 

Guidance note for residence, domicile and the remittance basis: RDR1

Thank you.

Dear Admin 19, This savings are from year 2020, I became UK residence in 2021 and I am not a tax residence yet, I will be in February 2023. Is the capital from year 2020 taxable?

Hi Tsz Chun,

Please note that the transfer of money from an overseas bank account to a UK bank account has no income tax implications.

However, any interest that arises may be taxable. You can find more details here:

Tax on savings interest

Thank you.

Hi,
 

Your income from 19/20,which is in your Qatari bank account would just be considered capital when brough to the UK.  If it generates any interest you would be taxable on that . Thank you.

Hello, I hope this message finds you well. I am UK citizen (through naturalisation) and resident. I work and live currently in UK. Currently, I am looking to buy a house for residential purposes in England and I would like to better understand tax implication when it comes to transferring money from my home country of Poland. CASE_1) My parents who are Polish residents (and citizens) and they live in Poland are considering to transfer me some money to support me in buying a property. Could you advise what tax implications it may have and whether I need to make any form of declaration to HMRC? My current understanding is that there is no income tax nor inheritance tax on such transfers as they classify as gifts under inheritance premise (as long as it is below 325,000 GBP). CASE_2) To support the purchase of this property, I am also considering taking a loan in Poland (due to some personal circumstances). I would like then to transfer this money between my Polish and UK bank accounts. Would there be any tax implications in the UK of such transfer if money comes from a foreign loan? How should I communicate such process to HMRC? Please could you advise on the above cases. Thank you in advance for your support.

Hi Jan,

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

There are no tax implications of transfering money from a foreign bank to a UK bank, provided the money being transferred, is capital and not income arising in the tax

year it is transferred.

Thank you. 

Hi there, I want to transfer some money from abroad (Brazil) to my UK bank account, so I can buy a house in the UK. I'm Brazilian, but I'm a UK resident. This is my money that was left to me from my dad that passed away and some part of it are my savings. Do I pay tax to get this money here and use to buy a property? I'm looking forward to hearing from you. Many thanks.

Hi,

Currently, there are no legal limits on the amount of money you can transfer to the United Kingdom.  

There are no Income Tax implications on the transfer of inherited money or savings, unless they generate interest or dividends. These would then potentially be subject to tax. You can see further guidance here:

Tax on savings interest

Tax on dividends

Thank you.

Dear Sir/Madam, I moved to the UK in September 2020 on a Student Tier 4 Visa but switched to Skilled worker Tier 2 dependent in January 2023. However, I will be graduating by July 2023. My living costs depreciated after my family renewed our visa from student to tier 2 in January 2023, so I wish to transfer some money from my savings in my Nigerian bank account to my UK bank account via Swift. I am wondering if I need to pay any income tax because of this transaction? Could you please share your thoughts on this? Thank you.