Money gifts into US accounts and the tax man
Apr 20th 2015, 5:25 am
#16
Forum Regular
Joined: Dec 2011
Posts: 193
Re: Money gifts into US accounts and the tax man
Has anyone used QNUPS or QROPS? I am selling/sold my UK property on avoid the new tax changes and am thinking of using Momentum in Malta. Has anyone used this or other QNUPS? Also, what are the charges? My charges would be 1000 set up fee, 1000 a year from Momentum and .25% from the adviser? I have about 7 years before I would start draw down.
Any comments/feedback would be appreciated
Any comments/feedback would be appreciated
Apr 20th 2015, 5:31 am
#17
MODERATOR
Joined: Nov 2006
Location: Hong Kong, mostly.
Posts: 5,214
Re: Money gifts into US accounts and the tax man
FWIW sending the money in increments below the reporting threshold is known as "structuring" and can have its own set of penalties.
http://en.wikipedia.org/wiki/Structuring
http://en.wikipedia.org/wiki/Structuring
Apr 20th 2015, 10:04 am
#18
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Re: Money gifts into US accounts and the tax man
Not exactly, "structuring" is specific to cash deposits, but the reasons, effects and consequences are very similar.
Last edited by Pulaski; Apr 20th 2015 at 10:12 am.
Apr 20th 2015, 2:26 pm
#19
Just Joined
Joined: Apr 2015
Posts: 6
Re: Money gifts into US accounts and the tax man
I am UK domiciled. The flat was inherited by my brother and I in 2012 and I bought him out in 2013. Not sure if it still counts as inheritance?
The adviser is suggesting that the flat be sold to avoid future CGT in both the UK and the US plus double taxation on income in both countries. If it is put into a QNUPS/QROPS then tax is avoided until taken out as income in 7 years with 30% being taken out tax free first. Is he misleading me?
The adviser is suggesting that the flat be sold to avoid future CGT in both the UK and the US plus double taxation on income in both countries. If it is put into a QNUPS/QROPS then tax is avoided until taken out as income in 7 years with 30% being taken out tax free first. Is he misleading me?
Apr 20th 2015, 2:34 pm
#20
Forum Regular
Joined: Dec 2011
Posts: 193
Re: Money gifts into US accounts and the tax man
You would need tax advice in the US before placing money into a trust. Would the 30% be tax free in the US? This is not a pension being transferred, but a new investment. It is not taxable in the UK.
What relevance has 7 years? PET rules ( ie 7 years ) do not come into play with QROPS/QNUPS.
What relevance has 7 years? PET rules ( ie 7 years ) do not come into play with QROPS/QNUPS.
Apr 20th 2015, 2:58 pm
#21
Just Joined
Joined: Apr 2015
Posts: 6
Re: Money gifts into US accounts and the tax man
30% is tax free in the US and UK. Checked on IRS website and UK website. 7 years is when I get to retire 
Apr 20th 2015, 2:59 pm
#22
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Re: Money gifts into US accounts and the tax man
I am UK domiciled. The flat was inherited by my brother and I in 2012 and I bought him out in 2013. Not sure if it still counts as inheritance?
The adviser is suggesting that the flat be sold to avoid future CGT in both the UK and the US plus double taxation on income in both countries. If it is put into a QNUPS/QROPS then tax is avoided until taken out as income in 7 years with 30% being taken out tax free first. Is he misleading me?
The adviser is suggesting that the flat be sold to avoid future CGT in both the UK and the US plus double taxation on income in both countries. If it is put into a QNUPS/QROPS then tax is avoided until taken out as income in 7 years with 30% being taken out tax free first. Is he misleading me?
Personally I would find an experienced and qualified tax accountant to look at your situation and advise you, because there are all manner of "financial advisors" out there with dubious qualifications to provide advice on potentially complex tax situations - and if they are getting fees or commission their advice is not going to be impartial.
