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Posted Thu, 15 Jun 2023 09:56:00 GMT by
Hello, Hope all is well. I intend to move GBP20,000 from my account in my country of birth to my account here in the UK. The monies are savings from previous years - before coming to the UK - and are in a current account that accrues no interest - I have been losing on monthly charges just to keep that account open. I plan to use the money here in the UK to perhaps pay for PhD studies or save for a mortgage. I am on a skilled worker visa in the UK, a tax resident and plan to settle here indefinitely when the time comes. I would like to know whether I am to pay any tax on the amount or need to report it to HMRC. Many thanks!
Posted Tue, 20 Jun 2023 11:43:49 GMT by HMRC Admin 5
Hi,

You will not need to pay tax on the capital that is transferred but you will on any interest or dividends that this then generates.

Thank you
 
Posted Tue, 20 Jun 2023 12:31:25 GMT by
Thank you HMRC Admin, Will this be the case if I place the transferred amount into a tax-free ISA? Thanks again.
Posted Tue, 20 Jun 2023 12:50:06 GMT by
Hello again, Just a follow-up to my reply above, and sorry to overwhelm you: 1- Is a tax-free ISA considered public funds for immigration purposes? I have no access to public funds under my current visa conditions 2- If I plan to invest some of the amount into a lifetime ISA - in which the government gives a 25% bonus - is this considered public funds? Thanks
Posted Thu, 22 Jun 2023 20:18:16 GMT by HMRC Admin 25
Hi ym92,
You do not pay tax on an ISA account, they are tax free. 
Thank yout, 


 
Posted Thu, 22 Jun 2023 21:06:59 GMT by
Thank you. What about my question on whether an ISA and/or a Lifetime ISA is considered public funds or not?
Posted Fri, 23 Jun 2023 08:49:18 GMT by HMRC Admin 25
Hi ym92,
No, this in not a public fund as it is you who makes payments to it. 
Thank you. 
Posted Fri, 23 Jun 2023 09:17:18 GMT by
Thank you
Posted Wed, 21 Feb 2024 14:48:07 GMT by
Hi, when we make payment to LISA, the government will add a 25% bonus to your savings. I was wondering if this 25% added by government is considered as usage of Public fund. Can you please provide a clarification on this. Thanks
Posted Thu, 22 Feb 2024 09:17:40 GMT by HMRC Admin 25
Hi Abin,
You would need to ask the USA tax authorities as it is them who have added it.
Thank you.


 
Posted Thu, 22 Feb 2024 22:23:32 GMT by Yoga1
I am in the same situation (moving savings from abroad, which were accumulated prior to moving to the U.K.). However, the capital HAS been generating interest for 10 years. How do I declare this amount if remitted to the U.K? Is my calculation below correct: 1. capital from overseas: $100,000 2. interest earned on capital over last 10 years: $10,000 3. decide to remit $50,000 to U.K. account today. 4. Do I declare 50% of the interest earned over the last 10 years on my 2023 return (i.e. 50% * $10,000 interest = $5,000) How would I translate the $5000 to GBP over a 10-year period? Interest is paid monthly on capital. Once I declare this money on 2023 return and pay taxes on the interest it generated, I can then move the money into an ISA and not have to worry about it ever again, correct?
Posted Sat, 24 Feb 2024 01:25:42 GMT by Faisal Khan
Dear HMRC Admin, I would like to seek your guidance on bringing past savings to the UK, i.e. savings that were earned before migrating to the UK. I migrated to the UK from Singapore and brought my past savings by remitting them into my UK bank account. These were investments that accumulated over several years and I sold them while I was in Singapore, the funds were in my Singapore bank account before I migrated to the UK. These savings did not earn any interest as Singapore has near-zero interest rates on savings accounts. Moreover, I incurred a loss due to the high amount of charges on account of pre-mature redemption, so there were no capital gains either. Based on the above scenario, I would like to know the following: 1) Are there any tax implications for bringing such savings to the UK? 2) Do I need to file tax returns to mention about bringing these savings into my bank account in the UK? Please let me know. Thanks in advance.
Posted Tue, 27 Feb 2024 08:36:01 GMT by HMRC Admin 8
Hi,
Any savings / interest, derived from income arising outside of the UK, in tax years where you were not resident in the UK, is considered capital and is not taxable when brought into the UK.  
Only in  tax years you are considered tax resident in the UK, will foreign income and gains be taxable in the UK.
Thank you.
Posted Tue, 27 Feb 2024 10:25:12 GMT by HMRC Admin 8
Hi,
Please refer to guidance at:
Paying tax on the remittance basis (Self Assessment helpsheet HS264)
Thank you.

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