Tax implications moving money from US to UK

After over 10 years in the UK, we have finally decided to see if we can buy a house. I have a small amount of money (in the region of 20,000 pounds) to put towards a deposit.  These are in my name only in the USA.

What I wanted to know was if there were any tax/reporting implications for moving a sum over to the UK.  Does it make any difference if some would come to an account in my name and another sum to my husband? (we have separate current accounts.) Is there so much in any tax year or per month that is allowed?

Completely unsure about any of this so thought I would check to see if anyone has done anything like this. 

There are no tax consequences to moving cash, but if the money is invested and you realize capital gains then those have to be dealt with for US and UK taxes. Also if you  have over $10k in a non-US bank account you must report that on an FBAR form.

There are no tax consequences to moving cash, but if the money is invested and you realize capital gains then those have to be dealt with for US and UK taxes. Also if you  have over $10k in a non-US bank account you must report that on an FBAR form.

+1

In 2010 we transferred 40k GBP to our US bank with no problem, so I'm sure it will be the same going to the UK, as long as the money has already been subject to taxation.

U.S banks have a legal obligation to report any transaction of $10k or more to the Treasury. Amounts below this are not reportable by the financial institution, but multiple transactions over time of less then $10k are. Just be certain you're up to date with FBAR and 8938 reporting if relevant to your circumstances. FBAR limits are easy to exceed, as it not only includes bank/building society and premium bond balances, but pension"pots" too.

U.S banks have a legal obligation to report any transaction of $10k or more to the Treasury. Amounts below this are not reportable by the financial institution, but multiple transactions over time of less then $10k are. Just be certain you're up to date with FBAR and 8938 reporting if relevant to your circumstances. FBAR limits are easy to exceed, as it not only includes bank/building society and premium bond balances, but pension"pots" too.

Excellent point.  If you have >$10k In a foreign bank at any time during the year it has to be reported when you file, even though you won't be taxed on monies that happen to reside in a foreign bank, just on the interest and dividends.

FBAR limits are easy to exceed, as it not only includes bank/building society and premium bond balances, but pension"pots" too.

Not all pensions are the same when it comes to FBAR. If the pension is employer administered or a final salary plan the FBAR is not required. It is required for plans like SIPPs and NEST.

Not all pensions are the same when it comes to FBAR. If the pension is employer administered or a final salary plan the FBAR is not required. It is required for plans like SIPPs and NEST.

I had asked about employer pensions when I contacted the FBAR help number and was told that the only exception was the U.K OAP as this is not your account, you can't make a distribution/have no control, so no signature authority. I guess it depends on who you talk with and their interpretation.

NEST is an employer administered plan.

I had asked about employer pensions when I contacted the FBAR help number and was told that the only exception was the U.K OAP as this is not your account, you can't make a distribution/have no control, so no signature authority. I guess it depends on who you talk with and their interpretation.

NEST is an employer administered plan.

NEST is a DC plan and you have an account you can direct into various investments so it would go on FBAR. If you have a final salary DB plan there is no account in your name, just a promise to pay you income at retirement so you have no signature authority.

only one small point if you're a USC. When you buy your house, you have to calculate the purchase price at that day's exchange rate. When you sell it, you may have capital gains. The selling price, and hence gain, is calculated at that day's rate of exchange. So if you buy when the exchange rate is, eg, $1.50 and sell when it's $2.00, you'll not only have the 'real' gain, but also have the 'extra' gain because of the exchange rate. (and there's something complicated about it not working in your favor in the event that you sell at a loss). All this is just to say that with the rate fluctuating, as it is right now, and is expected to be for the rest of the year, you might want to think a little about timing your transfer and purchase (admittedly this is difficult given the already difficult hassle of house buying). These rules also apply when you re-mortgage - it's like a sale for purposes of figuring capital gain.

Thanks for all of the responses-they are all very useful and informative.

I've been filing the FBAR stuff for the years that I needed it and will have to consider the exchange rate, etc.! Here's hoping we can even borrow enough to buy anything!!

NEST is a DC plan and you have an account you can direct into various investments so it would go on FBAR. If you have a final salary DB plan there is no account in your name, just a promise to pay you income at retirement so you have no signature authority.

Remember that if you have serious ill health you can take a distribution from a pension at any age. This maybe where FBAR get the signature authority bit from. You have the option/choice to take a distribution ultimately by you signing the documents.

only one small point if you're a USC. When you buy your house, you have to calculate the purchase price at that day's exchange rate. When you sell it, you may have capital gains. The selling price, and hence gain, is calculated at that day's rate of exchange. So if you buy when the exchange rate is, eg, $1.50 and sell when it's $2.00, you'll not only have the 'real' gain, but also have the 'extra' gain because of the exchange rate. (and there's something complicated about it not working in your favor in the event that you sell at a loss). All this is just to say that with the rate fluctuating, as it is right now, and is expected to be for the rest of the year, you might want to think a little about timing your transfer and purchase (admittedly this is difficult given the already difficult hassle of house buying). These rules also apply when you re-mortgage - it's like a sale for purposes of figuring capital gain.

+1

We had to do this when we sold our UK house.  The same rules apply as if it was a house in the USA in that you can add the cost of improvement projects that increase the value of the house.  In our case, after buying the house in the UK we completely re-fitted the kitchen, and we also had to note the exchange rates on the dates when we bought the fittings and paid the contractor.