Wire transfer US bank to UK bank - is it that easy??

Hm, thanks, guya. How does foreign currency gain work then? Are we looking at the difference in exchange rate when it was loaned to them vs. the exchange rate now?

Can I put my head back in the US tax sand now please?

My brain had gone to sleep - I meant to say you are supposed to give them a W-9 Form (not a 1099).

Anyhow, yes the UK wants to know if there is a currency gain because of exchange rate movements just as you say!

I've done all my transfers through PayPal (I have both a US an a UK account).  The fee to send is included in the currency conversion (I paid $1.74 per £1 when the raw rate was $1.68).  I then paid £3 to receive the money.  This might be a cheaper option, but it does take time (roughly 2 weeks).

I have to send a one-time payment from a US account to a UK account.  It looks like Paypal will charge the recipient 5.9%.  Does this sound right to the folks who have used Paypal before?   Why does it take 2 weeks?  Paypal has always been instant for me.. am I missing something?

I don't recall paying 5.9% when I used PayPal.  It takes 2 weeks if you go the cheapest route, which is writing an eCheck instead of the instant transfer and it must wait for the funds to clear for each step (which takes about a week for each).  The fees for the sender are included in the conversion rate.  The fees for the recipient depend on their account.  On a premier account (which is what I have), the fee is 3.9% plus 20p for anything under £1500.  However, PayPal limits the fee to £3.50.

My parents borrowed quite a large amount of money from me out of my US bank account awhile ago, and now that their place has sold (contract signed today - hurray!)  they are paying me back.

I would second the XETrade recommendation if it is a large sum.  Banks charge fees plus take a big percentage by giving a poor exchange rate.

Actually, for really large transactions I use Moneycorp as they charge a flat fee but take a lower percentage than XETrade.  I would recommend them for those sending large sums to the US but if it's a one-off US to UK trade it's not worth it as you'll likely need a US $ account set up here in the UK to complete transfer which is a pain in the ar$e.

I would second the XETrade recommendation if it is a large sum.  Banks charge fees plus take a big percentage by giving a poor exchange rate.

Actually, for really large transactions I use Moneycorp as they charge a flat fee but take a lower percentage than XETrade.  I would recommend them for those sending large sums to the US but if it's a one-off US to UK trade it's not worth it as you'll likely need a US $ account set up here in the UK to complete transfer which is a pain in the ar$e.

Thanks, Mastiz...I think my dad is looking into the options on his end to see what will give us the best deal.

guya, can I ask you if it would make sense for my parents to transfer the money into my husband's own account instead of one in my name? Would this absolve me of any US tax responsibility? I file 'married filing separately' and my husband doesn't have an ITIN.

thanks!