Laws re money transfer from US to UK

Hi All,

As some of you might know from previous posts my husband and I are in the process of buying a home. A chunk of the deposit is in a U.S. bank account I share with my mom (we've had this joint account for 10 years or so).

I now want to start bringing some of this money over to the U.K. (around $50,000 USD in total).

How does this work in terms of tax purposes? Do I have to declare it as income when I file my U.S. tax returns? (even if my name is on the account it's coming from?) Do I need to bring over less than $10,000 per time? What are the laws about this?

Any advise is so appreciated - total beginner here!

Thanks

There is no restriction as to how much money you bring over at a time, and nothing that you need put on tax returns. I assume this money is already yours and your husband's. Some good exchange rates can be found using Currencyfair. You will have FBAR reporting to do for the UK accounts that hold the money before home purchase takes place.

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Thanks for the response RW.

The money has been in a joint account that I share with my mother (she lives in the U.S and I live in the UK. The account is in the US)

So I don't need to worry about the $10,000 rule? It seems too easy!

I think the rule about there being reporting of transactions above $10,000 has to do with cash payments,  not wire transfers. Perhaps others know more.

ALso, wouldn't I not need to fill out a FBAR form on this money until NEXT year (when I file my taxes for 2016?)

Thanks again

That is correct.

ALso, wouldn't I not need to fill out a FBAR form on this money until NEXT year (when I file my taxes for 2016?)

Thanks again

Yes filed at the same time in early 2017, but it is not part of your taxes. You submit it separately on-line at: http://bsaefiling.fincen.treas.gov/main.html

It might be an unwise choice for you as a US citizen married to an NRA spouse to have any ownership interest in the new UK home, because you are exposed to future US tax on any future sale of the property or on any future capital repayment on any mortgage.

From your mum's perspective the transfers to you in the UK are probably completed gifts, so she may have a US gift tax filing obligation next year.