spud1963

I wonder if someone can help?
We sold our main residence in the uk when we moved to Canada in 2012 but left some of the funds in a uk Nat West account, it was about 120k now 40k.
We have transferred the 80k over the 4 years we have been here.
Nat West have written asking for documentation to confirm our tax status and copies of passport ect, this has got us worried we have done something wrong. My understanding was main residence sale attracted no tax and that when/if we move funds from that source to Canada there is no tax just the interest gained on the bank account was declared in Canada on our tax return. Is this correct? What also worries me is why Lloyds Bank where we have a current account have never asked these questions, could it be that this account earns no interest, the Nat West is a savings account so does, although it is so low.

JonboyE

There is nothing in what you say above that suggests you have done anything wrong.

Tangram

That sounds correct

PB65

My guess would be maybe you do not have a UK address registered with the bank and some UK banks are getting very tetchy about non residents having bank accounts as though those that do are 'money launderers' . In extreme cases banks have been known to close accounts with little notice in such cases. Could be completely innocent of course related to being non UK taxpayers although that would be irrelevant since april 6 when interest for little is worth gets paid gross now. My money would be on the non resident angle though

Snowy560

When you start moving (sizeable) amounts of money from banks in one country to banks in another, in my experience, they often ask you why you're moving it and where you got it from. I think they have to report this because of money laundering etc.

In addition, my UK bank recently asked me for proof of identity and I had to send a whole load of stuff to the UK (quite a few of us with the same bank on this forum got asked).

So I think what you're describing sounds quite normal, but I agree: we end up feeling like we might have done something wrong with our own money!

S

spud1963

Thanks for the replies.
I should add that the Nat West account is in the name of my wife and we move money to Lloyds and then transfer to Canada, just because we can't send direct from her account as it is a savings account, they said.
We do not have a uk address set up on the accounts, interestingly Lloyds wrote to our Son and Daughter here stating you are getting gross interest on your savings accounts if this is still correct do nothing. They did not ask for any documentation.

spud1963

New worry now. My wife did not declare the interest on her Uk Bank Account on her Canadian tax return for the three years we have completed them, she thought as it was less than 100 pounds it did not need to be shown! What is the best action we should take to rectify?