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  • Transfer of foreign assets - Non Dom tax status

    I became a tax resident of UK in April 2022 and have filed as a non dom for the year 2022-2023. I will be filing as a non domiciled tax payer. I intend to transfer some funds from my foreign account to my UK account to buy a house. I understand that assets owned by me prior to April 2022 (when I moved to the UK) can be transferred to the UK without any tax implications. However my situation is a bit unique. I had fixed deposits in my foreign account which I opened in June 2019 (prior to moving to UK). These FDs matured in June 2022 ( after becoming a tax resident in the UK), I used the same principle to open a new FD account in June 2022 which will mature now in Feb 2024. Will I have any tax liability as a non domiciled tax payer if I transfer only the original principle from 2019? I will not be transferring any of the interest earned since 2019 but only the principle amount that I had in 2019. If I am allowed to transfer the principle only, what documents do I need to maintain? Will bank account statements from 2019 be good enough? Thanks
  • RE: Transfer of funds from foreign account

    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
  • Transfer of funds from foreign account

    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.
  • Transfer of old savings into UK

    Hi, I have recently become a tax resident for tax year 2022- 2023 and will be filling my returns as a non dom on remittance basis. I intend to transfer some funds from my home country where I am a registered tax payer and have filled my returns since 2001. I have bank fixed deposits which were made prior to April 2022 before I become a tax resident. These FDs will mature this year and will get automatically transferred to my existing bank account in India. In summary, these are bank fixed deposits made prior to becoming a tax resident (previous assets) and will mature this year. I understand that assets prior to becoming a tax resident will not be taxed in case of remittance into the UK. What kind of documentation do I need to maintain to prove to HMRC that these are assets that I owned prior to becoming a tax resident and