Mallory

Well, I'm not an expert, but this is how my accountant relayed it to me.

It is not income to me. It didn't come from wages, dividends, stocks, etc. It is an inheritance.

If it were a huge amount in the UK, inheritance tax would be paid from the estate in UK. Most inheritances aren't that big. If it were big, the USA has a double taxation agreement, so if it were paid in UK, it would not be owed in USA.

But there again, it's the "deceased's estate that is taxed" - not you.

It's a bit like a gift. The person who gives the gift pays gift tax, not the recipient.

I never put it on my tax forms, as per my accountant. Six to seven years have passed, and nothing has happened yet?

Now a state pension would be taxable in the USA, because that is income. You could have it taxed in either country, depending where you bank. Apparently, the UK/USA "talk to each other." I have a friend who gets UK pension and USA pension, and she puts it on her tax form. But as I said - money was earned, not given to her.

Disclaimer: Not trying to be an expert - could be wrong - just my little bit of knowledge.

Luckyone

I'm not sure line one of the above statement is strictly true. I have accounts, including chequing and savings with a local High Street Halifax Building Society. They have specific accounts for non-UK residents, and any interest (not much at the present time) is paid tax free. I did open them during a visit to the UK so I'm unsure as to whether it can be done without being present. However, it does tend to to go against the initial statement at the start of the above quote. As a Canadian resident I pay tax on any interest earned here in Canada.

Thydney

I think you'll find the terms are different from the average bank account UK residents have specifically tax.

Luckyone

Don't doubt it, but I was merely stating that one can open a UK bank account whilst living outside the UK.....once an account has been opened, it will be taxed in the 'normal' way until you 'phone an International section of the Halifax and have them read a declaration to you in order to gain the tax excempt status. I thought it may be a way for the OP to meet her idea of depositing his funds in the UK for future use.

Thydney

He could just use HIFX and get it changed at a good rate and put in his account in the US

Luckyone

So when id the rate meant to meet the definition of a 'good rate'? Looks pretty crap at the moment, as stated by her own view in the initial postings, and why she was looking for an alternative.

But you're correct, she could do what you suggest.....it just wasn't what she was looking for

Mallory

She said she was looking to go on vacation to UK. She could get a family member to buy her, and other person's tickets from UK, and then leave the rest of the money there. When she gets there for her holiday, she could spend the pounds. I would hate to trade pounds to USD at today's rate.

I would be thinking outside the box, as a way to enjoy mum's money.

fulwood

Thanks everyone. i still read the emails from you all. still uncertain which route to take..going to england is not feasible to get the money right now. need to either get over here or just let reside in uk bank for a while. in today's economy I have decided I will some time in the future need access to the funds so leaving them for future "jaunts" (said sarcastically) in England is not possible nor sound..thanks for all your responses..

dunroving

I'd ask a) when was this (things have changed a lot in recent years), and b) were you explicit about the fact you were resident outside the UK when you opened the account?

I think some folks have got around the whole residence thing by keeping a UK address (parents, etc.) and being on the electoral roll, and then not declaring non-residence when opening the account...

Luckyone

Hi Dunroving...in answer to your specific questions:
1. Over a number of years, firstly maybe 5 years, but as recent as last week when I moved some money from one account, and opened a different one. So what is it you state has 'changed a lot in recent years?.
2. No lies from me at all. In fact I had mentioned earlier that one has to call their International section after a minimum of 24 hours, to confirm/verify your residency status in order to have the account as 'tax free' in the UK. You have to be totally explicit. They mail documents, statements etc to me in Canada! Is that explicit enough?

Your last part may be correct, I don't know but I can't see advantage to what you suggest. Maybe this link will assist....http://www.halifax.co.uk/savings/nonukcustomerrates.asp

dunroving

[Crap! I just typed a reply and BE crashed when I tried to send it - that's the 4th time today! Mods, is there a problem or is it just me?]

OK, second attempt [abbreviated version]

My experience (and the experiences posted on here by many other people) is that nowadays, due to stricter regulation tied in with 9/11, anti-terrorist-related money laundering, etc, it's almost impossible to open a new, UK-based (not offshore) current account (savings are easier - I see the link you sent was for savings accounts).

Banks won't ask you to close an existing account just because you move overseas, and if you are saying you opened the account 5 years ago (before the stricter regulations), and have been using the account since then (i.e., haven't opened an account since then), that would make sense. I was with Barclays the whole time I was overseas (20+ years and they knew I was there ... but that was an exisiting account. I also banked with Smile (savings and ISA), but when I tried to open a new current account in 2005 (I was in the US at the time) they said No way, Jose (but informally, the guy told me if I had kept a UK address and was on the electoral roll, I might have been able to wangle it ...)

However, you said you opened a new account last week. My guess is that was not a UK-based, current account ... I'd be pretty surrpsied if it was.

OK, going to copy and paste this before hitting Send this time ...

Luckyone

My only point was commenting on the statements made on here that one cannot open a UK bank account without being a resident of the UK. If I see statements that I believe are less than factual, and may mislead others, I'll comment where possible. ie you can open a bank account whilst living outside the UK, you don't have to lie and use someone else's address, in fact the accounts I refer to wouldn't work unless you're a non-reseident.

Jerseygirl

When I was in the Nat West in November a couple in front of me were trying to open a current account. They were asked for untility bills to prove their ID and address...they said they hadn't any because they were living with the guys parents. I don't know what happened but in the end they left without opening an account.

Maybe it's possible to open a new account if you already have an existing one...just a thought.

dunroving

I'm not sure where you are coming from - I'm not calling you a liar or arguing with you ... why do you seem to be getting a bit p*ssd off? (perhaps I'm misreading your post)

I think some clarity would help people, rather than getting into a barney ... I'm just trying to help people get at the right information just like you

So - you are saying that you were able to open a UK-based (not offshore) current account last week? A simple yes or no to that question would clear things up.

Juswus

hmmmm. I'm gonna be in the same situation soon.

My father just died intestate in UK. It's not a big deal emotionally for me as I hadnt seen him since I was a kid. It's all just a bit weird really.

One of my brothers is willing to be spokesperson for all 3 of us siblings, but I'm wondering how this goes down. I'm guessing they'll need original birth certificates etc. Surely it can't be too complicated, this must happen all the time with next-of-kins living abroad?

Anyway, I hadn't even though what to do with the money. I don't think there will be much left over. I may as well try and leave it over in UK. Maybe I'll give my share to one of my brothers who just lost his job over there.

hmmmm