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Posted Wed, 02 Feb 2022 00:26:10 GMT by Ramen Kumar Bhar
I am working here in the UK and holding a Skilled worker visa at the moment. Do I need to pay any tax for the below scenarios? If yes, then I would like to the UK tax rules/processes which I have to follow (if there is any) while transferring money from India to the UK via online money transfer sites. Also would like to know if there is any slab or upper limit or something else. Source of funds are as below, Scenario 1 :- Money is earned in the UK (from salary and paid the tax for the same) and sent to India. Now I want it back here in the UK. Scenario 2 :- Provident Fund (received in India) received from my previous employer. Already paid the tax in India. Scenario 3 :- Gifted/inherited money from parents(in India). Want to send it to the UK. Thanks in advance.
Posted Wed, 02 Feb 2022 15:19:39 GMT by HMRC Admin 17

Hi,
 
There are no income tax implications on the transfer of money from the UK.

If you are UK resident then you will be paying tax in the UK on any income earned.

You will only need to pay income tax on income from India that is transferred to the UK if previously you have claimed
the remittance basis on this income.

As a UK resident, you will need to report your worldwide income to the UK unless you are claiming the remittance basis. 

Thank you.
Posted Wed, 02 Feb 2022 16:27:57 GMT by Ramen Kumar Bhar
Dear Team Apologies as I am not clear on this. similar queries, 1. Do I need to pay tax if it's my own personal savings which I want to transfer from india to uk? 2. Do I need to pay tax if my parents transfer money to me as gift from india to uk? Apologies for the inconvenience and thanks in advance.
Posted Wed, 02 Feb 2022 21:35:36 GMT by HMRC Admin 18
Hi,

You only need to pay tax on the transfer if you have claimed the remittance basis on any of this income in the past. If this income was earned while UK tax resident then it should have been

reported already. There are no income tax implications on the transfer of money as a gift from parents. 

Thank you.
 
Posted Wed, 12 Oct 2022 12:49:13 GMT by Kunwar Singh
Hi I am working here in the UK and holding a Skilled worker visa at the moment. Do I need to pay any tax for the below scenario: I have been working in UK for the past 5 years and over the years I've sent money back home to india. Now, I am planning to get the same money back, do I have to pay any tax on it again or declare it etc? Thanks
Posted Fri, 14 Oct 2022 14:09:14 GMT by HMRC Admin 19
Hi,

You can see guidance here:

Tax on foreign income

Thank you.
Posted Fri, 02 Dec 2022 12:30:11 GMT by Abhijit Ghatge
Hi, I have been working in UK for the past 6 years and also have acquired British Citizenship. From my savings in the UK, over the years I've sent money back home to India and will be doing that in the future. Going forwards, at some point if I decide to get back the same amount of money to the UK which I have transferred in past years to India, do I have to pay any tax on it again or declare this remittance anywhere? The money originally transferred from UK to India was post tax savings amount. Please advise. Kind Regards,
Posted Fri, 02 Dec 2022 15:57:07 GMT by HMRC Admin 32
Hi,

There wont be any tax to pay on the actual capital that you transfer.

You will have to declare any interest or dividends that this then generates whether it is in India or the UK.

Thank you.
Posted Tue, 03 Jan 2023 21:22:37 GMT by Neisha Kaul
Hi, I am a Dutch and Indian resident in the UK and want to sell an inherited property in India. Do I have to pay tax in India, the UK or both? Should I then transfer the money from an Indian bank account into an English one or is there a better way to declare a check directly into my English account? Again, should I pay tax over this amount and in which way? Thank you.
Posted Thu, 05 Jan 2023 11:30:12 GMT by Shivam Gupta
Hi team, From what I understand from HMRC guidance on remitted basis is that if the unremitted income / gains are less than £2,000 in a tax year, nothing needs to be done if one is non-domiciled resident in UK. Guidance below: "Tax if you’re non-domiciled You do not pay UK tax on your foreign income or gains if both the following apply: they’re less than £2,000 in the tax year you do not bring them into the UK, for example by transferring them to a UK bank account If this applies to you, you do not need to do anything." If I am filing a self assessment because of other reasons, can I then just ignore this income, which is less than £2,000, say £500? If yes, what happens to this £500 if my domicile changes to UK next year and i) I remit this income to UK or ii) I do not remit this income to UK?
Posted Tue, 10 Jan 2023 13:21:25 GMT by HMRC Admin 32
Hi Neisha Kaul,

You may be liable to Capital Gains Tax in both countries. If you are resident and domiciled or deemed domiciled in the UK, then you may be liable to capital gains tax in the UK, on the disposal of the property in India. Have a look at the residence, domicile and remittance basis, to determine your position.  

RDR3 Statutory Residence Test  

There is also a capital gains calculator at:

Capital Gains Tax: what you pay it on, rates and allowances  

You will need to convert a figures to UK pounds sterling to work out if there is any tax to pay.

Thank you.
Posted Wed, 11 Jan 2023 11:57:02 GMT by HMRC Admin 19
Hi Shivam Gupta,

You can see further guidance hee:

Paying tax on the remittance basis (Self Assessment helpsheet HS264)

Thank you.
Posted Sat, 21 Jan 2023 23:41:22 GMT by JithinJose2409
Hi Team, I moved to the UK in skilled worker visa and started working In a permanent job under my sponsor employer in the UK from October 2022. Before moving to the UK, I was working in India and I have some savings in my Indian bank account. These are savings after the taxes I paid in India and income source was salary from my Indian employer while I was working in India before moving to the UK. Could you please tell me if I transfer my savings from my Indian salary I have now in my Indian account to my UK bank account that I opened after moving to the UK, do I need to pay tax again on the transferred amount here in the UK. I would like to transfer my savings for my and my family’s living expenses in the UK and also for paying the deposit in future for buying a home here in the UK. Kindly advise. Thanks Jithin
Posted Tue, 24 Jan 2023 15:40:11 GMT by HMRC Admin 17

Hi,
 
You do not need to pay tax on the actual capital that you transfer.

If this then generates any interest or dividends once you deposit it in the bank, the income it generates is liable to tax .

Thank you.
Posted Sat, 28 Jan 2023 05:03:43 GMT by Joe Pullely
Hello there, I've been in the UK on a spouse visa for the past 2.5 years, working and paying taxes on my earnings. I am planning to sell my flat in India and would like to transfer the money to the UK for a deposit on a new house. Since I will be paying tax in India on the sale of my flat, will I still have to pay tax on the money transferred over here, which will be approximately £30,000?
Posted Wed, 01 Feb 2023 08:46:53 GMT by HMRC Admin 19
Hi,

There are no UK Income Tax implications regarding the transfer of money from an overseas account to a UK bank account. Any interest that accrues may however be taxable. You can see more information here:                                           

Tax on savings interest

Thank you.

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