transferring money back to uk - tax implications?
 

first of all sorry if this has already been answered elsewhere.

i'm planning to set up a monthly transfer from my uae account to my UK account to cover my liabilities in the UK.

Someone mentioned to me that if i did that i'd be liable to uk income tax on the amount i send - it doesn't quite sound right to me. does anyone have the answer.

also would i get more for my AED if i transferred say via western union to my brother who could stick it in my account rather than bank to bank as i assume the banks don't give a great exchange rate?

thanks

Re: transferring money back to uk - tax implications?
 

Reading many of these posts, there is no tax on money sent back that covers your bill etc here, it is only on savings. I am transferring mine straight back to a family member just incase of any costs...!

Re: transferring money back to uk - tax implications?
 

It depends on your particular position. You are able to send monies back, but will have a liability if you are not UK non-resident for tax purposes, or are not so for an extended period.

You will need to compare the rates offered on small transfers, taking into account bank charges. Much more competitive rates are available, using wholesale as opposed to retail exchange rates, but this is only viable for sums of around GBP 10k or above.

Re: transferring money back to uk - tax implications?
 

Makes no difference what you send it for! It depends on the individual's position for tax purposes.


If you send monies to another person, above the gift limits, they could have a potential liability on the amounts paid to their bank account, unless correctly documented.

Re: transferring money back to uk - tax implications?
 

AH crap, i am never going to understand this!!! The only reason i am sending it back to my mother is because she is transferring it into my UK account to ensure all bills are covered at the right time!!!! However, if obviously i can show all the money transferred is for bills then this should be okay, even though it has gone through her account?! The same amount transferred will be the same amount she will put in my bank and you will clearly see from statements that it cover bills?!

Fricken tax!!! I must make an appt with a tax person and sort this out! And i will qualify for the non-res thing, as i wont be here 90 days in to this tax year, only 60 :)

Re: transferring money back to uk - tax implications?
 

Dub - good post and I'm going to do the same thing. I'm going to send money back to my family to pay mortgage, bills and food etc. Surely I won't get taxed for supporting my family? If I do can someone explain in pure simple person terms what I need to do to avoid this? Inflation for the middle classes was confirmed today on citywire (true cost) as 7.2% not the 2-3% the goverment tell us. I pay 40% tax and I feel like I get little for it. I need to get out of the ladette culture here - litle Britain tells it like it is!

Re: transferring money back to uk - tax implications?
 

It is not that complex. It is not advisable to transfer money to your mother - her receiving money is a taxable event if it is not a gift and gifts have both rules and limits to prevent them being taxed. It is not to do with how she sopends it any more than any other person in the uk can claim tax exemption for paying a mortgage and house maintenance.

Just pay the money directly yourself. All you are doing is trying to make your life easier and creating a risk - that is up to you but paying directly will avoid this.

I assume you mean that will only be in the UK for 60 days in the tax year. Provided that you are away for the whole of the tax year less 60 (in fact up to 90) days then your overseas earnings should be tax exempt - but you need to set yourself up properly inc;uding submitting the R85 (???) form.

Re: transferring money back to uk - tax implications?
 

I can count about four issues in your post. You cannot say '.. surely I won't get taxed for supporting my family...' If they receive money then THEY might get taxed.

Who cares about middle class inflation - become working class or upper class if being middle class is a problem to you.

Who cares if you pay 40% tax - vote them out. The French pay a lot more and really Britain needs to pay more to support the services that it offers.

If you are leaving the country soon then be careful to set it up properly and be away for the whole tax year which, assuming you leave before next April will be to April 6 2009 at least. Avoid making personal payments and operate a UK account in your name and pay the bills through that. You can gift to your family of course but not an unlimited amount.

The tax system is easy at present but will become tighter as the government will try to claw back all remittances because there is a huge opportunity. No one - except you and me will care - because UK residents will not back a tax free existence for ex-pats so politically it is dead safe.