Changing Currencies

I have seen a great deal on this but I cannot seem to find the details we are looking for.

We are moving to the UK and we will need cash (pounds) for our apartment deposit etc. before we will have our account set up at a UK bank.  So we need to change dollars for pounds.  I know this can be done at banks, at a post office in the UK, or at currency exchanges in the airport etc.  People say that the post office is the least expensive but what is a good rate?

If we charge on our US credit card, I know that rate from my company.  paypal, xe and other websites require us to have accounts on both sides.  I also know my US bank will charge a services fee for currency changes for ATM withdraws in the UK.  So if I am planning on needing about 4000 pounds, what rate would be good and where have people successfully done this before?

Thanks

can you set it up so that you can authorise a wire transfer from your US bank to the bank account of the estate agent/landlord when you find a house?

The remittance will give rise to UK tax liabilities so you should take tax advice before the transaction.

The remittance will give rise to UK tax liabilities so you should take tax advice before the transaction.

What?!  It is likely pre-arrival capital.  Maybe not, but surely you should caveat the statement that it is a remittance that "WILL" give rise to a UK liability. 

There will be a currency gain or loss.  I'd hate to figure that bit out now that most folks arriving in the UK won't get an annual CGT exemption.

It will be coming from a mixed fund account so may include other income such as interest arising from 6 April 2009 that would be taxable.  HMRCs views on current law can be found here:

http://www.hmrc.gov.uk/cnr/res-dom-tax-amends.htm

Thanks for the warning on tax issues, however I really am asking what is the "going rate" for converting currency.  What is a reasonable charge?  What does the post office charge in the UK, etc?

In addition I read over the guidelines on HMRC.  I understand from these guidelines that we will be classified as ordinary residence domiciled in England.  That we will have to pay taxes on our wages and any earnings we make while living in the UK.  However, I do not understand why we have any tax liability on money we earned before moving there that we choose to bring with us.  I understand that no one here can give tax advice.  But I must be missing something because as I read the sections that apply to me "7.2 When you have come to the UK permanently or to live or work for three years or more".  I have read the section on capital gains and I do not think it will apply.  The money we will be converting is coming out of a non-interest bearing account. 

In the past I have traveled with a few hundred pounds or Euro's without any tax issues.    I thought I read somewhere that so long as it was less than in value than 10,000 Euros I did not even have to declare it to customs.   I want to follow the rules but perhaps I have the rules incorrectly.

Thanks for the warning on tax issues, however I really am asking what is the "going rate" for converting currency.  What is a reasonable charge?  

Check xe.com or oanda.com for the current exchange rate.  There is not one rate that all locations of the same type will charge - not all post offices will give you the same rate, not all currency exhange booths will give you the same rate, not all banks will give you the same right.   A "good" rate will be one that is close to the rate listed on one of these sites.  The current rate is approx 1dollar = .61GBP.

There will be a currency gain or loss.  I'd hate to figure that bit out now that most folks arriving in the UK won't get an annual CGT exemption.

It will be coming from a mixed fund account so may include other income such as interest arising from 6 April 2009 that would be taxable.  HMRCs views on current law can be found here:

And again, if it is a loss, no UK liability.  And just because it is a mixed fund, even if he has some interest arising since 6 April 2009, doesn't necessarily mean a UK liability (he can be split year and disregard the NR period for one).  You have made a whole bunch of assumptions, without caveats to that, and declared that the result is a UK liability -- which isn't necessarily true.