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Posted Fri, 10 Nov 2023 16:31:28 GMT by San CA
I have recently become a tax resident in the UK and have filed my returns as a Non Domicilled tax payer on remittance basis. I understand that funds owned prior to becoming a tax resident can be remitted to the UK without any tax liability. My query is as follows: I have fixed deposit in 3 different foreign banks which has recently matured. All FDs existed prior to becoming a tax resident. Now that they have matured, I would like to bring the funds to the UK. Do I need to transfer the funds directly from each foreign bank to my UK bank? Or can I transfer funds into one foreign bank and then transfer the aggregated amount to the UK Bank? Needless to say I will maintained all statements of the bank account. My concern is how will I prove that the aggregated amount is linked to the FDs in the other banks other than s showing the origin of the funds from the FDs that existed prior to becoming a tax resident.
Posted Mon, 13 Nov 2023 15:30:16 GMT by HMRC Admin 17 Response

Hi,
 
You are correct that funds from tax years where you were not UK resident, can be brought to the UK without being liable to UK tax. 

It does not matter how you transfer the monies into your UK bank account .

Thank you. 
Posted Mon, 13 Nov 2023 17:21:17 GMT by San CA
Thank you for the feedback I just want to make sure that I don't fall foul of the rules so will post the query again with an illustration. I am aware of the rules related to the transfer of assets that were owned before I became a UK tax resident. I have fixed deposits with banks A, B and C. All the FDs were created before I became a tax resident in the UK. In others words these qualify for transfer to the UK without any tax implication. However upon maturity of the fixed deposit in each of the above banks, can I aggregate the principle amount (excluding the interest) from Bank A and Bank B into Bank C and do a one time lump-sum transfer? Or do I need to transfer the funds from each bank separately? Needless to say I will maintain the bank statements for all 3 banks so the movement of funds from Banks A and B into Bank C can be verified. Thank you
Posted Thu, 16 Nov 2023 11:52:05 GMT by HMRC Admin 25
Hi San CA,
How you transfer the funds is up to you.
Thank you. 

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