Transfer Money from US to UK - Fees and Options

I've read most if not all topics on money transfer   helpful, but still unsure.
I want to transfer money from a US HSBC bank account to an UK HSBC bank account.

Bank to Bank Wire transfer will result in $20-$30 + 10-15GBP, so $35-$50 in total...
To make this a specific example and better compare  options, let's say the amount of money to be transferred is between  GBP 10K-15K.

I read paypal is great, but for small amounts.
The other more feasible options are XE or moneycorp.  Never heard of either...  They seems be offer main other services revolving around currency exchange.  I'm guessing I will go with either of these because I've read you  get a better exchange rate; but I've also read you are still incurring wire transfer fees, etc.   For the amount being transferred, is it too similar in fees to the bank-to-bank transfer and not worth the hassle, or does it save a little?

I transfered a simlar amount of money via a wire transfer from US HSBC to UK HSBC. After the transfer went through I computed the effective exchange rate by comparing dollars subtracted from my US account (including fees) and pounds added to my UK account. The effective exchange rate was essentially in the noise of the exchange rates on the XE website. With 10-15k, the HSBC fees are a really small percentage of the total exchange.

Thank you!
Well I was thinking of going with money corp...   The flat fees become a small issue on bigger amounts, but I've read several times that the xe and moneycorp exchange rates gives are much better than banks.  people have quotes different spreads of may ~4-5cents whereas I saw someone say a bank had a spread of about ~10cent...  I know I should be using percentages, but.   Anyways, this is from what I gathered here, and not direct info.
Thanks for sharing about your case.  I guess I'll stop by HSBC and ask and also ask moneycorp and see if I can compare.

Paypal is charging ~4.5cents or 3.3% off the exchange rate... 
How does this compare?

So here are my details...

On 13 Jan I transfered 10,000 USD from my US HSBC account and was charged a fee of 30 USD. On 14 Jan my UK HSBC account was credited with 6704.76 GBP and there were no fees on the UK end. By my calculations I recieved an effective exchange rate of 1 USD to 0.668 GBP (or 1.496 USD to 1 GBP).

Checking http://www.x-rates.com/d/USD/GBP/graph120.html suggests that HSBC gave me the same rate as posted on x-rates. I do not know how the posted x-rates exchange rate comapres to the esxchange rate you get with xe.com. The important point is that, had I waited a few days I would have done 6% or so better, but if I gone a few days earlier I would have done 6% worse. I think any difference between HSBC and xe.com (or anything else) is small comapred to the volatility in the exchange rate (at least right now).

thanks beeper !!!

I've signed up with moneycorp, but I will doublecheck with HSBC first as well.
moneycorp is 15GBP, and it should be a better conversion rate, but it may only be marginally or insignificantly better, still dont know..  I still like that I can do it myself online.
With HSBC I have to go to the branch.  Is that only for the first time perhaps?

The rate is looking pretty decent now.  I was hoping it revisited its low point or go slightly below 1.40 for a short while just for me   But it may go back up so I better hurry!

I didn't have to go to the branch for HSBC (that's how I did my transfer).  I did get hit with the $30 fee, but when all was said and done, my transfer went through in about 48 hours, and at the fair exchange rate (I timed it a little bit, but it wasn't fluctuating SO much that week) so everything went as expected.  I had to fax the information over initially, as it was my first transfer, but after this I can do it by phone.

good to know, thanks..  did you have an incoming fee in the UK or was it not HSBC UK?

I'll ask HSBC before I go with moneycorp... and see if I can compare and report back

Nope, just the charge from my US account, but no incoming fee from HSBC.  I have to say, I know there are mixed reviews of customer service, but I've had nothing but good service from them, and I've been a customer for years.  When I went to set up my bank account, I did not have a permanent address, but since I was working, they just asked me to get a letter signed from my employer verifying my temporary address and used that for my account.  Then, he talked me out of the Passport account (I thought I had to use that) and into a better account, which does not have any hidden fees and also had a checkbook (more of a creature comfort for me, despite the fact that I do most banking online).

Granted, I don't qualify for much of an overdraft yet, so building credit looks like it might be hard, but I think I will apply through them for one of their credit cards. 

great, thanks...  now I hope they can quote fx rates  prior to transaction to be able to compare, and I'll surely consider going with them, as long as they are nice as they were to you

I did not get charged a fee on the UK end either. I think I had to fax something to HSBC, but did not have to go to the branch to do the wire. HSBC has been helpful to me (granted I paid them 200 USD to setup my UK account) throughout everything. One thing I could not get them to do was quote a rate prior to the transaction.

Has anyone looked into starting an account with a bank like Barclays, I know that they have offices in the US, and then it would be a simple matter (probably not) to just change your address to the UK.  I don't know, I haven't done any research, but just a thought.
 

Has anyone looked into starting an account with a bank like Barclays, I know that they have offices in the US,
 

Not that I know anything, but isn't that just investment banking?     There used to be regular Barclays but I thought they pulled out of that.  Anybody know of any branches?

So here are my details...

On 13 Jan I transfered 10,000 USD from my US HSBC account and was charged a fee of 30 USD. On 14 Jan my UK HSBC account was credited with 6704.76 GBP and there were no fees on the UK end. By my calculations I recieved an effective exchange rate of 1 USD to 0.668 GBP (or 1.496 USD to 1 GBP).

Checking http://www.x-rates.com/d/USD/GBP/graph120.html suggests that HSBC gave me the same rate as posted on x-rates. I do not know how the posted x-rates exchange rate comapres to the esxchange rate you get with xe.com. The important point is that, had I waited a few days I would have done 6% or so better, but if I gone a few days earlier I would have done 6% worse. I think any difference between HSBC and xe.com (or anything else) is small comapred to the volatility in the exchange rate (at least right now).

hmmm...

From a UK tax perspective this could give rise to a capital gains tax bill.

Let's say the $10,000 was earned when the rate was $2.00 to the £; so in Sterling it "cost" £5,000.  You convert it at - say 1.40 - so the value when converted is £7,143.  In Pounds that is a capital gain of £2,143.  This is taxable in the 2008/09 tax year, potentially at UK rates of 18%.

If you don't claim the remittance basis, you'd get a CGT exemption so could avoid UK tax but would then report worldwide income on your UK tax returns.  I can't know enough about your circumstances to know if you'll be claiming the remittance basis but I suspect you'll probably end up having to report worldwide income and gains plus actual remittances to avoid paying tax on this gain.

but there's no way to avoid this whether a loss or gain I suppose, if you need to move the money..  I know the tax factor can make it very complicated...