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Topic: Is transfer taxable?  (Read 1155 times)

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Is transfer taxable?
« on: October 14, 2016, 09:20:56 AM »
I need to transfer some money from my US bank account to pay for something. I can use a transfer firm to pay the recipient directly or I can transfer directly to my UK bank account. If I transfer to my bank account, is that considered "income" by the UK tax people and therefore taxable? It would be easier to do it but I'm concerned about the tax implications. Does anyone know?


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Re: Is transfer taxable?
« Reply #1 on: October 14, 2016, 09:42:48 AM »
There is no tax to pay when you transfer money as you suggest, either to yourself or anyone else to pay for something. 
« Last Edit: October 14, 2016, 09:43:53 AM by durhamlad »
Dual USC/UKC living in the UK since May 2016


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Re: Is transfer taxable?
« Reply #2 on: October 15, 2016, 06:10:19 PM »
You asked about the tax implications of a transfer of funds to the UK. Durhamlad correctly reassured you that there would generally be no UK tax consequences.

Of course, this would not be the position if you are a UK resident non-domiciled individual who has been claiming the remittance basis on non UK situated investment income. If that were the case, you should note that settling a UK liability is within the definition of a remittance for UK tax purposes.


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Re: Is transfer taxable?
« Reply #3 on: October 15, 2016, 07:11:00 PM »
Of course, this would not be the position if you are a UK resident non-domiciled individual who has been claiming the remittance basis on non UK situated investment income. If that were the case, you should note that settling a UK liability is within the definition of a remittance for UK tax purposes.

Hmmm... not sure what a "non-domiciled individual" or "non UK situated investment income" is but thanks to both responses.


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Re: Is transfer taxable?
« Reply #4 on: October 15, 2016, 07:43:34 PM »
Hmmm... not sure what a "non-domiciled individual" or "non UK situated investment income" is but thanks to both responses.

If you don't know if you are non-domiciled then it's a pretty safe bet that you are domiciled, paying tax on the income from the interest from your overseas bank account and any other foreign income as it arises. 
Dual USC/UKC living in the UK since May 2016


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Re: Is transfer taxable?
« Reply #5 on: October 15, 2016, 09:42:34 PM »
Well, I know I file tax returns in both countries. I am still a US citizen but have "indefinite leave to remain" here and this is where I live full-time. I hate taxes, filing taxes, reading about taxes, worrying about taxes, having nightmares about taxes, and knowing I simply do not understand taxes!  >:(


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