Preparing for our move to the UK, we have been sending (exchanging) money into my wife's UK account. Will this money be taxed? If yes, what might be the tax on £10,000?
I understand there's a double tax agreement between US and UK, and all the funds sent are 'after tax' dollars (not retirement funds) so surely they can't tax us again???
I also heard somehow you have a choice to be taxed on all your foriegn income or only on a remittance basis (taxed on those funds you remit to UK). But to claim remittance basis, you need to pay £30,000 fee? What??? In what backwards world does it make sense to pay a fee of a year's income to get a tax break? Clearly this law is for the super wealthy or corporations to avoid being taxed on offshore accounts?
I am dreading filing my taxes next year.
thanks