Tax implications of transferring money to the UKby Vidit Agarwal Marketing Director Tax on money transferred
Generally speaking a million online discussions asking questions about, if you are transferring existing assets from abroad or transfer foreign income into the UK how you will be taxed or not? The UK taxation system is so simple for those who residing in UK and have gain income from UK resources.
It’s about the transferring all the savings, foreign income from abroad to UK (UK residential and non-residential).
Tax implications of transferring money to the UK: Residential and non-residential is crucial factor in deciding whether you are eligible to pay the tax in the UK or not. If you are non-residence of UK then you have not pay the tax on any foreign tax, however your residence in UK will taxable. But if you are residence in UK then you must have to pay tax on all your income, whether you have received it in UK or from any foreign country.
There are some instances when you have to pay UK income tax on transferring money from your own foreign bank account:
- If you are earnings from working in abroad
- If your profits from running a business in abroad
- Gains from selling or giving away overseas assets
- Interest on investment and savings in overseas bank accounts
- Other overseas investment income (for e.g. pension, dividend and overseas shares)
Your domicile is crucial factor. This is where you have your own permanent address, like where you were born. Your domicile determines a person’s liability of Inheritance tax, currently its charge is 40% on the value of your total assets over the current rate £325,000 IHT threshold.
It’s important you to understand whether transferring funds from foreign country to and from your home country is taxed on not? Here, you can look at the situation for both UK residence and non-residence individuals.
However, you should always consult an experienced accountancy or financial firm to get the latest information for the legal process that apply to you.
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Created on Apr 2nd 2018 08:57. Viewed 569 times.