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Tax Implications - UK FBAR?

Tax Implications - UK FBAR?

Old Dec 24th 2014, 11:38 pm
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Default Tax Implications - UK FBAR?

Hey all - just returned to the U.S. after an early Christmas back with my parents in the UK. While there, my Dad was asking me about FACTA and what that means. For me, I have a UK current/checking account that I use to for when I travel to the UK and to make payments to my student loan. There is never more than £100 in there at any point so I don't file FBAR or 8938. I came away with two questions:

1 - I'm a non UK tax resident (I am a UK citizen who has been a permanent resident in the US for 7 years and work for a U.S. company in the US) so I do not report or pay any UK tax as I have no UK income. Does the UK have a equivalent of the FBAR or form 8938 where I would need to report my US bank accounts? I wouldn't think so as UK citizens aren't taxed like that once they become a non resident for tax purposes.


2 - I have started to transfer around $50-$70 a month to my UK current account to pay my student loans through direct debit (was doing it via my US credit card before but didn't like the fees). As a non UK tax resident, I would assume that money I transfer to that UK account wouldn't be taxable in the UK, right? It's not income from a UK source and it's already been taxed by my US employer already.

Thanks for any insight - this stuff always makes me feel somewhat anxious and I would love to have some answers so I can relax

Happy Christmas!
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Old Dec 24th 2014, 11:49 pm
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Default Re: Tax Implications - UK FBAR?

You didn't say, but I'm assuming this account doesn't pay any interest? If you earn no interest, then there are no US tax implications. With low balances, no US FBAR reporting either.

As you mention, you aren't a British resident at this point in your life. So no, the British tax authorities are not concerned with you and your US financial affairs. And again, if no interest paid on the British account, they shouldn't be concerned about that either..
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Old Dec 25th 2014, 12:19 am
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Default Re: Tax Implications - UK FBAR?

Originally Posted by robin1234 View Post
You didn't say, but I'm assuming this account doesn't pay any interest? If you earn no interest, then there are no US tax implications. With low balances, no US FBAR reporting either.

As you mention, you aren't a British resident at this point in your life. So no, the British tax authorities are not concerned with you and your US financial affairs. And again, if no interest paid on the British account, they shouldn't be concerned about that either..
I should have said - but no interest on my current account. I think HSBC did away with that in 2007, but I know no interest is ever added. I called and made sure. I also have no retirement accounts or accounts that would need to be reported.

And that's good regarding UK tax. I figured as much, but I just wondered if they tracked citizens accounts regardless of where they live - just like the US. I guess they don't unless you are considered a tax resident. I will keep adding money to that account to take care of my loan with no worries of tax implications!

Thanks!
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Old Dec 25th 2014, 12:33 am
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Default Re: Tax Implications - UK FBAR?

Sorry with a sub £100 balance and £50-£70/mth transfers you just aren't a big enough fish to to hit either the the US's or UK's IRS's radar.

Obviously you should aim to comply with both countries' tax filing and paying laws, but I sincerely doubt either country would bat an eyelid if you did nothing with respect to that account and those modest transfers, and anyway transfers between accounts in the same name are not taxable in either country whether they are for $1 or $1,000,000, or more.
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Old Dec 25th 2014, 12:41 am
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Default Re: Tax Implications - UK FBAR?

Originally Posted by Pulaski View Post
Sorry with a sub £100 balance and £50-£70/mth transfers you just aren't a big enough fish to to hit either the the US's or UK's IRS's radar.

Obviously you should aim to comply with both countries' tax filing and paying laws, but I sincerely doubt either country would bat an eyelid if you did nothing with respect to that account and those modest transfers, and anyway transfers between accounts in the same name are not taxable in either country whether they are for $1 or $1,000,000, or more.
Haha I hear you! But like you said, I do want to make sure I comply with all applicable tax laws. I get pretty anxious about those things - hence the question. But based on what I said, it seems like I would have nothing to report anyway just like robin1234 said, right?
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Old Dec 25th 2014, 12:43 am
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Default Re: Tax Implications - UK FBAR?

Originally Posted by DTLVbrit View Post
Haha I hear you! But like you said, I do want to make sure I comply with all applicable tax laws. I get pretty anxious about those things - hence the question. But based on what I said, it seems like I would have nothing to report anyway just like robin1234 said, right?
Yes, nothing to report, so sleep easy.
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Old Dec 25th 2014, 1:09 am
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Default Re: Tax Implications - UK FBAR?

Originally Posted by Pulaski View Post
Yes, nothing to report, so sleep easy.
Thanks so much Pulaski, and thanks robin1234. You have been very helpful and I certainly feel better now knowing I don't need to report anything

Have a great Christmas!
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Old Dec 25th 2014, 1:42 am
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Default Re: Tax Implications - UK FBAR?

Also, just to be sure - the UK doesn't have anything like the FBAR that citizens must report (such as my US savings, 401k etc) regardless of their residency? I didn't think many other countries tax citizens like the US does in terms of residency anyway
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Old Dec 25th 2014, 1:55 am
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Default Re: Tax Implications - UK FBAR?

Originally Posted by DTLVbrit View Post
Also, just to be sure - the UK doesn't have anything like the FBAR that citizens must report (such as my US savings, 401k etc) regardless of their residency? I didn't think many other countries tax citizens like the US does in terms of residency anyway
No.
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Old Dec 25th 2014, 2:56 am
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Default Re: Tax Implications - UK FBAR?

Originally Posted by DTLVbrit View Post
Also, just to be sure - the UK doesn't have anything like the FBAR that citizens must report (such as my US savings, 401k etc) regardless of their residency? I didn't think many other countries tax citizens like the US does in terms of residency anyway.
Like Hotscot said, definitely not. FBAR and FATCA are uniquely American idiocy.
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Old Dec 29th 2014, 6:51 am
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Default Re: Tax Implications - UK FBAR?

Your UK bank may still choose to report you annually under FATCA - and could decide as a consequence at some future date that you are too expensive a customer to maintain because they need to cover their own reporting costs; and so the bank might close the account one day.
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Old Dec 29th 2014, 10:31 am
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Default Re: Tax Implications - UK FBAR?

Originally Posted by Cook_County View Post
Your UK bank may still choose to report you annually under FATCA - and could decide as a consequence at some future date that you are too expensive a customer to maintain because they need to cover their own reporting costs; and so the bank might close the account one day.
Interesting point. I read that HSBC will contact certain US individuals for further information required for FATCA if needed (I imagine if the account has a lot of money in it - not £100 like mine). I haven't heard from them yet
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Old Dec 30th 2014, 5:25 am
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Default Re: Tax Implications - UK FBAR?

As required under UK law, HSBC in the UK ask for details of US indicia for all new accounts - but they could equally start looking at existing accounts if they wish to do so.
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Old Dec 30th 2014, 5:41 am
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Default Re: Tax Implications - UK FBAR?

Originally Posted by Cook_County View Post
As required under UK law, HSBC in the UK ask for details of US indicia for all new accounts - but they could equally start looking at existing accounts if they wish to do so.
Got it. I called them today just to ensure they knew I was a permanent resident in the U.S. HSBC said they needed to further details but will contact me if needed.

I guess I have done all I can for now. I will most likely close that account anyway at this point.
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Old Dec 30th 2014, 7:19 pm
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Default Re: Tax Implications - UK FBAR?

Originally Posted by DTLVbrit View Post
Got it. I called them today just to ensure they knew I was a permanent resident in the U.S. HSBC said they needed to further details but will contact me if needed.

I guess I have done all I can for now. I will most likely close that account anyway at this point.
Why'd you do that?

Generally speaking you should volunteer as little personal information as possible to corporations.
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