rwoodfine

If you sell you uk house what is best way of getting money to usa and are you liable to pay any tax to get this money into the usa?

Macca67

Do you have a bank account in the US? If so, then direct transfer between banks worked best for me, and costs about 25 quid. You should not be liable for any tax in the US, but might be in the UK.

D

rwoodfine

That is what I am trying to ascertain? Why should I pay tax in uk this is primary residence and would not attract tax if I was buying another uk house.

Bluegrass Lass

If you are a Permanent Residen or US citizen, you could very well be liable to pay Capital Gains tax here in the US. If this applies to you, then you should do some research into it. Direct transfer, as Macca suggested, is the most direct route of moving the money over.

penguinsix

The actual act of transferring money does not incur a taxable event in the US. However, the manner in which you transfer it *may* incur a 'reporting requirement' as part of the anti-money laundering laws. If you were to bring in > $10,000 in cash or other negotiable instrument (i.e. a cashiers check from your bank) you personally would have to file a reporting form with the IRS. If you do it electronically, you are not required to report this, but the bank will likely have to report it as part of the bank's anti-money laundering reporting requirements.

This is just a report filing requirement. It does not mean you will owe taxes, you just have to say 'I'm doing this'. Come the end of the year they may look at your actual tax 'filing' to see if the money in the filing 'jives' with the money they think you made (plus the amount you 'reported'). It was designed to catch drug dealers or gamblers who were moving millions of USD$ in cash and then reporting an income at the end of the year of $50,000.

Whether there is a tax on the money you made depends in large part on your residency status at the time the money was earned.

Chrissywissy100

We were not taxed by the UK when we sold our UK house, other than by the bank (tax on interest that was accrued) during the time the money sat in the UK bank account. We transferred the money over though wire transfer though our HSBC bank accounts (UK-US), and it was easy peasy.

You should be aware that you will have to declare as part of your federal tax return, any money you hold in UK or US bank accounts which accrue interest. You will be taxed on that interest by the US irrespective of where it is. And they are particular interested in any sums over $10,000 in any account at any time.

BritishGuy36

As long as you sell the house before becoming an LPR then you are fine.

If you become an LPR before selling the house then it's more complicated as has already been mentioned, uncle sam might be due some of your profits!

rwoodfine

It will be 350k (550k dollars and rising if exchange keeps going in the right direct) + so sure it will attract attention. And hopefully sold prior to my arrival, what do you mean lpr?

farmerwife

LPR = Legal Permanent Resident

rwoodfine

Thanks

Bob

xe.com is a popular service with good rates....but yeah, if you become a LPR first, then the rules change, and also it might depend on the state in which you then reside in.