Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Transferring money to Uk.

Transferring money to Uk.

Old May 6th 2019, 9:44 pm
  #1  
Forum Regular
Thread Starter
 
Joined: Jun 2013
Posts: 110
freerskier is an unknown quantity at this point
Default Transferring money to Uk.

Hi there fellow expats.

I want to help my brother out and give him some cash. Nice huh!

Just wondered what the tax rules are transferring money to the uk and what amounts are deemed appropriate that don’t attract attention? I don’t think from my research there’s any tax or reporting requirements as long as it’s not billions.

Im gonna give him £40000 and was thinking of sending it via XE to my Natwest account initially. I’ve used XE tons in the past to send 10k chunks to the US - great service by the way - now I’m just sending it back the other way. Oh and by the way all tax paid on the money as it’s originally from my mums estate.

Cheers dears.
freerskier is offline  
Old May 6th 2019, 10:03 pm
  #2  
Lt Col (Retd)
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 45,657
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Transferring money to Uk.

Receiving gifts in the UK has no tax consequence (giving gifts if the donor is in the UK has potential consequences, but that isn't your situation). Giving gifts has no tax consequences in the US if the donor is in the US AFAIK.

Don't worry about the amounts - there are tens of thousands of wires sent from the US daily, many of them to the UK and many are vastly larger than the sum you are sending. The worst things that you can possibly do are (i) to worry about your transfer "attracting attention" (it won't, unless you or your brother are a known terrorist or drug dealer, or one of you are unfortunate enough to have a name similar to someone who is, and in any case it is the name that attracts attention not the size of the transfer), and (ii) to do anything to try to avoid attracting attention, because if there is one thing that is guaranteed to attract the attention of the banks at one of both ends of the chain, that is to try monkeying around with your transfer to try to avoid attracting attention to your transfer. A classic example is breaking the transfer into several small amounts - which is exactly the sort of activity that banks are looking out for! If your transfer is clean, legit, and you have nothing to hide, then that is how your should behave - send your transfer, clearly described, using your name and the name of the recipient, and send it in one lump sum.

BTW you might want to explore how competitive your bank is in exchanging your dollars for GBP by asking for their "dealing desk rate" (use those words) as exchanging $50k is enough that banks will do a significantly better rate than for small sums, and it is likely that they are competitive with XE, which I hear is not very competitive these days. You might also look at TransferWise that is widely tipped as currently recommended for offering competitive exchange rates.
Pulaski is offline  
Old May 6th 2019, 10:38 pm
  #3  
Forum Regular
Thread Starter
 
Joined: Jun 2013
Posts: 110
freerskier is an unknown quantity at this point
Default Re: Transferring money to Uk.

Thanks for the comprehensive reply. Pretty much what I thought but needed that kind of clarifying advice from the expat diaspora.

I’ll look at transferwise too - thanks for the tip.
freerskier is offline  
Old May 7th 2019, 1:36 am
  #4  
Forum Regular
 
Joined: Jul 2018
Posts: 57
vespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond repute
Default Re: Transferring money to Uk.

Originally Posted by Pulaski View Post
Giving gifts has no tax consequences in the US if the donor is in the US AFAIK.
Someone told me a few years ago that if you give over $14,000 to one person in one year you have to report it. So the OP should check if there are any reporting requirements under current rules.

Last edited by vespucci; May 7th 2019 at 1:44 am.
vespucci is offline  
Old May 7th 2019, 5:08 am
  #5  
Forum Regular
Thread Starter
 
Joined: Jun 2013
Posts: 110
freerskier is an unknown quantity at this point
Default Re: Transferring money to Uk.

Thanks, I’ll look into it.
freerskier is offline  
Old May 7th 2019, 11:30 am
  #6  
BE Forum Addict
 
Joined: Aug 2013
Location: Athens GA
Posts: 1,744
MidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond repute
Default Re: Transferring money to Uk.

Originally Posted by freerskier View Post
Thanks, I’ll look into it.
From this IRS link it appears that it is subject to gift tax because it exceeds the annual exclusion, currently $15,000. https://www.irs.gov/instructions/i70...40297522569072

Note.

Only the annual exclusion applies to gifts made to a nonresident not a citizen of the United States. Deductions and credits are not considered in determining gift tax liability for such transfers.
MidAtlantic is offline  
Old May 7th 2019, 12:36 pm
  #7  
Lt Col (Retd)
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 45,657
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Transferring money to Uk.

Originally Posted by MidAtlantic View Post
…. Only the annual exclusion applies to gifts made to a nonresident not a citizen of the United States. Deductions and credits are not considered in determining gift tax liability for such transfers.
Maybe I am incorrect, but because the gift mentioned in post #1 is in GBP, I was assuming that the recipient lives in the UK and is not a US citizen.
Pulaski is offline  
Old May 7th 2019, 1:03 pm
  #8  
BE Forum Addict
 
Joined: Aug 2013
Location: Athens GA
Posts: 1,744
MidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond repute
Default Re: Transferring money to Uk.

Originally Posted by Pulaski View Post
Maybe I am incorrect, but because the gift mentioned in post #1 is in GBP, I was assuming that the recipient lives in the UK and is not a US citizen.
I think it is the other way, but I have been known to be wrong ... "transferring money to the uk" .... "I’ve used XE tons in the past to send 10k chunks to the US - great service by the way - now I’m just sending it back the other way".
MidAtlantic is offline  
Old May 7th 2019, 2:25 pm
  #9  
Lt Col (Retd)
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 45,657
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Transferring money to Uk.

Originally Posted by MidAtlantic View Post
I think it is the other way, but I have been known to be wrong ... "transferring money to the uk" .... "I’ve used XE tons in the past to send 10k chunks to the US - great service by the way - now I’m just sending it back the other way".
Everything I have posted refers to sender in the US, sending USD, exchanging USD for GBP, and recipient in the UK receiving GBP, ...doesn't it? …. Which is what Freeskier asked about, right? … As per the bits of post #1 that you quoted in post #8.
Originally Posted by Pulaski View Post
Receiving gifts in the UK has no tax consequence (giving gifts if the donor is in the UK has potential consequences, but that isn't your situation). Giving gifts has no tax consequences in the US if the donor is in the US AFAIK.

Don't worry about the amounts - there are tens of thousands of wires sent from the US daily, many of them to the UK and many are vastly larger than the sum you are sending.

BTW you might want to explore how competitive your bank is in exchanging your dollars for GBP ....
Originally Posted by Pulaski View Post
Maybe I am incorrect, but because the gift mentioned in post #1 is in GBP, I was assuming that the recipient lives in the UK and is not a US citizen.

Last edited by Pulaski; May 7th 2019 at 2:31 pm.
Pulaski is offline  
Old May 8th 2019, 5:10 am
  #10  
Forum Regular
 
Joined: Jan 2016
Location: Cambridge, MA
Posts: 150
Mercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond repute
Default Re: Transferring money to Uk.

Originally Posted by Pulaski View Post
Giving gifts has no tax consequences in the US if the donor is in the US AFAIK.
Technically, consequences only when total gifting has exceeded the lifetime exclusion, currently $11.4 million. If amount of gift > $15,000 in one year then you need to file a gift tax return.
Mercury39 is offline  
Old May 8th 2019, 12:10 pm
  #11  
Lt Col (Retd)
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 45,657
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Transferring money to Uk.

Originally Posted by Mercury39 View Post
Technically, consequences only when total gifting has exceeded the lifetime exclusion, currently $11.4 million. If amount of gift > $15,000 in one year then you need to file a gift tax return.
Thank you for that additional information. It is good to know that my gifting has a little way to go before I reach the exclusion limit.
Pulaski is offline  
Old May 8th 2019, 1:48 pm
  #12  
Forum Regular
Thread Starter
 
Joined: Jun 2013
Posts: 110
freerskier is an unknown quantity at this point
Default Re: Transferring money to Uk.

So, just to clarify I in the US my brother is in the Uk. I am an LPR. And he is a British resident.

Do do I need to do a gift tax return as I’m giving him over $16k.
freerskier is offline  
Old May 8th 2019, 1:49 pm
  #13  
Lt Col (Retd)
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 45,657
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Transferring money to Uk.

Originally Posted by freerskier View Post
..... Do do I need to do a gift tax return as I’m giving him over $16k.
Yes.
Pulaski is offline  
Old May 9th 2019, 9:10 am
  #14  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,052
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: Transferring money to Uk.

Originally Posted by freerskier View Post
So, just to clarify I in the US my brother is in the Uk. I am an LPR. And he is a British resident.

Do do I need to do a gift tax return as I’m giving him over $16k.
Yes. I have done this and filed the form. It is easy to do, and worth doing because although you won’t owe any taxes the penalties for not filing are probably quite high.

I did something similar for my sister a few years back and when I came to transfer the money from my UK bank to hers I called my bank as the daily limit for free transfers you can do yourself is £10k. They told me that to avoid fees I could do the transfer in chunks of £10k every day, so my sister also informed her bank of what was about to happen simply to avoid suspicion of such transfers.

Last edited by durham_lad; May 9th 2019 at 9:12 am.
durham_lad is offline  
Old May 9th 2019, 10:34 pm
  #15  
Forum Regular
Thread Starter
 
Joined: Jun 2013
Posts: 110
freerskier is an unknown quantity at this point
Default Re: Transferring money to Uk.

Thanks for all the advice looks like its IRS form 709 as the gift tax return.

What I intend to do is actually transfer the money through XE to my own UK GBP current account and then write my brother a check or transfer it in GBP to his current account - does that change anything?

Thanks again team.

Last edited by freerskier; May 9th 2019 at 10:40 pm.
freerskier is offline  

Contact Us Archive Advertising Cookie Policy Privacy Statement Terms of Service

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.