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

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

Old Jul 23rd 2019, 3:48 am
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Default 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.
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Old Jul 23rd 2019, 8:49 am
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Default 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.
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Old Jul 23rd 2019, 3:39 pm
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Default 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.
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Old Jul 23rd 2019, 4:27 pm
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Default Re: Reporting & tax implications moving money back to UK after job loss

Let all involved financial institutions know prior to the transfer.
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Old Jul 23rd 2019, 8:09 pm
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Default 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
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Old Jul 23rd 2019, 8:38 pm
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Default Re: Reporting & tax implications moving money back to UK after job loss

Originally Posted by cautiousjon View Post
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.
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Old Jul 23rd 2019, 8:58 pm
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Default Re: Reporting & tax implications moving money back to UK after job loss

Originally Posted by durham_lad View Post
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.
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Old Jul 24th 2019, 12:14 am
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Default Re: Reporting & tax implications moving money back to UK after job loss

Thanks for all your replies.
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Old Jul 24th 2019, 11:30 am
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Default Re: Reporting & tax implications moving money back to UK after job loss

Originally Posted by Bolton1234 View Post
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.
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Old Jul 24th 2019, 2:24 pm
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Default Re: Reporting & tax implications moving money back to UK after job loss

Originally Posted by cautiousjon View Post
Nice! Which bank, if I may ask? I'd like to have free wires too.
HSBC US, Premier account through by HSBC UK account (£50k in accounts there)

Originally Posted by MidAtlantic View Post
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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