UK taxability of US monies transferred into British bank account

Greetings all--I couldn't find a thread that was quite focused on what I need to clarify. I moved to the UK in 2005 and am employed here by the NHS, so my UK salary is taxed under the PAYE system. However, I also transfer in monies from my investment accounts in the US, to supplement my meagre British earnings. The US assets go directly into my bank acct here. These monies, of course, are subject to taxation in the US. My questions: are these US funds taxable here; if so, when do I have to report them for  tax purposes; and does anyone know how rigourously individual current accounts are monitored for tax liability purposes (do I really HAVE to report these transfers from my US accts)?  Hope someone out there can clarify this stuff--I'm really anxious about it. --Austin

I am assuming that (a) you are resident in the UK and (b) you are not domiciled here.

Yes.  The income is taxed in the UK, but you get a tax break for any US taxes paid on them.  This process is called remittance.  You can learn about taxation here:  http://www.hmrc.gov.uk/pdfs/ir20.htm  and specifically about this topic here:  http://www.hmrc.gov.uk/manuals/immanual/im1560.htm (and hit the "next page" button to cycle through the items).

While you are not a higher rate taxpayer, it may be worth your while hiring a UK specialist accountant to sort this type of thing out.  Meanwhile, you should arrange to sort out your finances such that you are no longer exposed to remittance tax.  Again, a UK tax specialist can provide this guidance for you.

I recommend James Reeves at james@jreeves.co.uk.  He is reasonably priced, though he won't be able to help on the US side, just the UK (that makes him somewhat cheaper than a dual qualified person).  Alternatively, you can shop for a dual qualified person or company, which will be somewhat more expensive - but at least it's all in one place.

Thanks very much! As a practical matter, I'm not sure how I can avoid the circumstances that would require remittance, but I'll have to see what guidance the tax advisor has, so thanks for the recommendation on one (at this point I don't think it matters that he's not US qualified, as I've got loads of complexities that have to be dealt with by my current CPA in the States). Cheers.

An offshore account maybe???  I know HSBC offer have ones you can open, but I think you need a minimum opening balance of like $5000.  I have also heard that offshore accounts help relieve a bit of tax pressure stateside, but not sure how.