Tax Implications of Transferring Money from US to UK 2019/2020

Hello,

As tax regulations change, has anyone dealt/aware of tax implication regarding money transfers from US to UK bank account?

Like many here I am dual US/UK citizen and want to transfer c.£12k from my US bank to UK bank. My reservations are mainly around taxation:

1. say I sold a car or a house in US and the proceeds are £12k that I want to transfer from my US to my UK account  -would I need to pay taxes in UK on £12k upon wire transfer receipt?

2. is it better to transfer less than £10k at once to avoid filling any IRS/HMRC paperwork? (perhaps £6k this month and £6k next month?)

3. is it better to open USD account in UK to avoid currency exchange fees?

3.1 currently I am in the process of opening Lloyds Bank International USD account -any experience with wire tranfers into Lloyds USD current accounts?

Thanks in advance!

Hello,

As tax regulations change, has anyone dealt/aware of tax implication regarding money transfers from US to UK bank account?

Like many here I am dual US/UK citizen and want to transfer c.£12k from my US bank to UK bank. My reservations are mainly around taxation:

1. say I sold a car or a house in US and the proceeds are £12k that I want to transfer from my US to my UK account  -would I need to pay taxes in UK on £12k upon wire transfer receipt?

2. is it better to transfer less than £10k at once to avoid filling any IRS/HMRC paperwork? (perhaps £6k this month and £6k next month?)

3. is it better to open USD account in UK to avoid currency exchange fees?

3.1 currently I am in the process of opening Lloyds Bank International USD account -any experience with wire tranfers into Lloyds USD current accounts?

Thanks in advance!

Assuming you are tax resident in the UK and paying tax on an arising basis rather than a remittance basis then there is zero tax implication moving money from the US to the UK.

We sold a house in the USA and once in the UK transferred hundreds of thousands of dollars to our UK bank account
Converting $s to £s in the process and no IRS or HMRC paperwork required.

Our favored forex company is Transferwise.

Assuming you are tax resident in the UK and paying tax on an arising basis rather than a remittance basis then there is zero tax implication moving money from the US to the UK.

We sold a house in the USA and once in the UK transferred hundreds of thousands of dollars to our UK bank account
Converting $s to £s in the process and no IRS or HMRC paperwork required.

Our favored forex company is Transferwise.

Thanks for the reply, yes, I am paying taxes on the arising basis -but does it mean if I sell a house in US and clear a capital gain, I would have to pay taxes in the UK to HMRC?  For instance, if I sold a house in USA for $250k and cleared a capital gain of $50k -I would have to pay 20% capital gains tax of 50k = 10k to HMRC?

https://www.gov.uk/tax-sell-property/selling-overseas-property

Thanks for the reply, yes, I am paying taxes on the arising basis -but does it mean if I sell a house in US and clear a capital gain, I would have to pay taxes in the UK to HMRC?  For instance, if I sold a house in USA for $250k and cleared a capital gain of $50k -I would have to pay 20% capital gains tax of 50k = 10k to HMRC?

If the house is not your primary home that you’re selling to buy another in the UK then yes, you are subject to capital gains in the UK but your example is wrong. If you cleared a capital gain of $50k and you are in the UK 20% bracket then you have the first £12k with zero tax and the remainder taxed at  a rate lower than 20%.
https://www.gov.uk/capital-gains-tax/rates

 Calculating your capital gain also requires you to know the exchange rate when the house was bought and when it was sold plus complications with paying off a mortgage. All above my pay grade  I’m afraid