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Posted Thu, 31 Mar 2022 09:41:49 GMT by San CA
I will be moving to UK in the next tax year. However I have funds in my bank account in my present country of residence where I am employed full time. I intend to leave my funds in the bank and move them to the UK at a later date. While I understand that the income earned before becoming a tax resident is not taxable in UK, what are the implications if I move this income to UK AFTER I become a tax resident. What kind of documentation do I need to maintain to show that this income was generated before I became a tax resident. Do I need to maintain any salary documents from my present employer? Do I need to maintain bank statements to show this income? Do I need to have bank statements stamped by the bank? I would like to keep all document ready and carry with me when I move to the UK as I many not be able to travel back to my current country of residence.
Posted Fri, 01 Apr 2022 10:03:39 GMT by HMRC Admin 20
Hi San CA,

There are no income tax implications with you moving Capital from one bank to another.
The interest you receive from the accounts are taxable income.
If you are UK resident and still generating income from the other country then this would be declared as Foreign Income on a Self Assessment form:
Tax on foreign income

Thank you.
Posted Fri, 01 Apr 2022 10:16:40 GMT by San CA
Hi, My query may not have been understood. I'm aware of the tax implications of any income generated in a foreign territory. My query was specifically around moving my savings from my previous country of residence after I become a resident in UK. In the event I move my old savings from my current country of residence say 2 years later, what kind of documentation or proof would I need to maintain to demonstrate that the funds transferred to UK were from my previous savings. Do I need to maintain records of my bank account statements? And do these statements need to be stamped by the Banks. I would like to complete all required documents in my current country of residence before I move to the UK
Posted Tue, 05 Apr 2022 12:34:13 GMT by HMRC Admin 17

Hi,
 
Please speak with your UK bank for this information. 

HMRC are not involved in the transfer of monies from one account to the other. 

We can only advise you as per previous guidance that the interest on the savings would be declared to HMRC.  

However queries on the actual process should be answered by the bank  .

Thank you.
Posted Tue, 05 Apr 2022 12:50:25 GMT by San CA
Hi, I have already spoken to the bank. However they are not able to comment on the tax related issue. My query is limited to the principle amount which is related to my savings before I become a resident. While I know it is not taxable, what documents do I need to maintain in case I need to prove that this amount relates to my previous saving before I became a tax resident. How will I say prove that this amount was earned before I became a tax resident if I move it to UK in the future? Thanks
Posted Thu, 07 Apr 2022 12:46:59 GMT by HMRC Admin 20
Hi San CA,

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 - Remittance Basis: Introduction to the Remittance Basis: Overview of the Remittance Basis regime: What is the Remittance Basis?

Thank you.
Posted Thu, 07 Apr 2022 16:08:33 GMT by San CA
Thank you for your response. However I cannot see the relevance of the response to the query itself. I have mentioned hte query once again below and look forward to a clarification. I have not been a tax resident of UK but i will become a tax resident now. I understand my earning / savings prior to becoming a resident in the UK are not liable to tax (I am aware that any income arising from the savings is taxable). I intend to leave my savings in my previous country of residence until further notice. My specific query is as follows: When I move my savings to UK in the future, how will I prove that the source of the monies is my previous savings? What kind of documentation do I need to keep and present to HMRC in the event I need to prove that the amount transferred to UK is from my savings before I became a tax resident of the UK?
Posted Mon, 11 Apr 2022 12:54:11 GMT by HMRC Admin 10
Hi

If you have reviewed the guidance and the income you have mentioned is not taxable in the UK as this was prior to becoming UK tax resident then normally there is no evidence required when you transfer to your UK account. 

Thankyou.

Regards.

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