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-   -   Reporting & tax implications moving money back to UK after job loss (https://britishexpats.com/forum/usa-57/reporting-tax-implications-moving-money-back-uk-after-job-loss-926634/)

Bolton1234 Jul 23rd 2019 3:48 am

Reporting & tax implications moving money back to UK after job loss
 
Hi,
i was laid off after 5 years in the US (L1 visa) and will be returning to the the UK shortly. I will be transferring a fairly substantial sum (~150k) to my UK account before I move. Are there any reporting or US tax implications I need to be aware of before I initiate the transfer?
Thanks.

Cook_County Jul 23rd 2019 8:49 am

Re: Reporting & tax implications moving money back to UK after job loss
 
Only FBAR & Form 8938 in the year of the move; but you may have been filing these anyway.

durham_lad Jul 23rd 2019 3:39 pm

Re: Reporting & tax implications moving money back to UK after job loss
 
No reporting or tax implications that I am aware of. I moved a lot more than that the year I moved back. The following year you will need to file FBAR and possibly include 8938 forms on your IRS tax returns if you meet the FATCA thresholds. I had one year of filing 8938s because by the following year most of the money had been used to buy a house and I was back below the FATCA thresholds.

tom169 Jul 23rd 2019 4:27 pm

Re: Reporting & tax implications moving money back to UK after job loss
 
Let all involved financial institutions know prior to the transfer.

cautiousjon Jul 23rd 2019 8:09 pm

Re: Reporting & tax implications moving money back to UK after job loss
 
Do you know how you'll be transferring the money from USD to GBP? Transferwise is one of the cheapest services that I would recommend. The cheapest way to send money to Transferwise within the USA is via ACH, but that method is subject to a $15,000 ACH limit per day. You may opt for a more expensive but more painless (single) domestic wire transfer from your bank to Transferwise. Once Transferwise has received the money, they'll send the equivalent GBP (minus some fees) to your UK account.

https://transferwise.com/help/14/cur...s#global%20usd

durham_lad Jul 23rd 2019 8:38 pm

Re: Reporting & tax implications moving money back to UK after job loss
 

Originally Posted by cautiousjon (Post 12714038)
Do you know how you'll be transferring the money from USD to GBP? Transferwise is one of the cheapest services that I would recommend. The cheapest way to send money to Transferwise within the USA is via ACH, but that method is subject to a $15,000 ACH limit per day. You may opt for a more expensive but more painless (single) domestic wire transfer from your bank to Transferwise. Once Transferwise has received the money, they'll send the equivalent GBP (minus some fees) to your UK account.

https://transferwise.com/help/14/cur...s#global%20usd

I love Transferwise and until recently used the ACH method all the time. Recently my bank announced free wires so I save a few dollars more over ACH by wiring the funds to Transferwise, and also the money arrives in my UK account within hours instead of overnight.

cautiousjon Jul 23rd 2019 8:58 pm

Re: Reporting & tax implications moving money back to UK after job loss
 

Originally Posted by durham_lad (Post 12714045)
I love Transferwise and until recently used the ACH method all the time. Recently my bank announced free wires so I save a few dollars more over ACH by wiring the funds to Transferwise, and also the money arrives in my UK account within hours instead of overnight.

Nice! Which bank, if I may ask? I'd like to have free wires too. :thumbsup:

Bolton1234 Jul 24th 2019 12:14 am

Re: Reporting & tax implications moving money back to UK after job loss
 
Thanks for all your replies.

MidAtlantic Jul 24th 2019 11:30 am

Re: Reporting & tax implications moving money back to UK after job loss
 

Originally Posted by Bolton1234 (Post 12714118)
Thanks for all your replies.

I use Transferwise regularly also but, for sums this large, you should shop around, including asking your bank for the "dealer desk rate". A very small difference in rate, and making sure you account for fees, can make a bid difference in the net payment.

durham_lad Jul 24th 2019 2:24 pm

Re: Reporting & tax implications moving money back to UK after job loss
 

Originally Posted by cautiousjon (Post 12714052)
Nice! Which bank, if I may ask? I'd like to have free wires too. :thumbsup:

HSBC US, Premier account through by HSBC UK account (£50k in accounts there)


Originally Posted by MidAtlantic (Post 12714293)
I use Transferwise regularly also but, for sums this large, you should shop around, including asking your bank for the "dealer desk rate". A very small difference in rate, and making sure you account for fees, can make a bid difference in the net payment.

Excellent point. I did this for my big money transfers to buy a house and got a better rate from my bank. Even though HSBC offer instant money exchange from my HSBC US account to my HSBC UK account, Transferwise is still cheaper except the time I asked for the large transfer using the dealing desk rate.


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