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Transferring Smaller amounts of money UK -> US

Transferring Smaller amounts of money UK -> US

Old Jan 5th 2010, 3:01 pm
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Default Transferring Smaller amounts of money UK -> US

OK so this is a similar question to THIS previous thread.

Does anyone know the tax liability of transferring around 20,000 gbp to the US. The cash is coming from the sale of my house back in the UK so does not count as a gift as discussed in the previous thread.

Will it count as income in the UK, US, both or neither?

Any pitfalls to watch out for, or advice would be great.

Cheers
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Old Jan 5th 2010, 4:14 pm
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Default Re: Transferring Smaller amounts of money UK -> US

It's not a gift, or income, it's just your own money.
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Old Jan 5th 2010, 4:19 pm
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Default Re: Transferring Smaller amounts of money UK -> US

Originally Posted by BostonWeedgie View Post
OK so this is a similar question to THIS previous thread.

Does anyone know the tax liability of transferring around 20,000 gbp to the US. The cash is coming from the sale of my house back in the UK so does not count as a gift as discussed in the previous thread.

Will it count as income in the UK, US, both or neither?

Any pitfalls to watch out for, or advice would be great.

Cheers
There is no tax liability of transferring the money, but there could be on the sale of the house. However if you lived there as your main home and haven't rented it out for years then you should be fine.
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Old Jan 5th 2010, 4:39 pm
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Default Re: Transferring Smaller amounts of money UK -> US

Originally Posted by meauxna View Post
It's not a gift, or income, it's just your own money.
Agreed.

You will however need to figure out if you have a taxable gain on the sale of the house.
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Old Jan 5th 2010, 4:54 pm
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Default Re: Transferring Smaller amounts of money UK -> US

You may have to report it, not as part of income (which it isn't) but as part of the money laundering laws. If you bring 10,000 in cash or a cashiers check, the bank will have a form for you to fill out. This doesn't apply to electronic transfers however (though the bank, covered by a different law, may feel the need to file their own report under their guidelines).

This reporting is not a tax thing--just to make sure you aren't a drug dealer.
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Old Jan 5th 2010, 5:08 pm
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Default Re: Transferring Smaller amounts of money UK -> US

Originally Posted by penguinsix View Post
This reporting is not a tax thing--just to make sure you aren't a drug dealer.
And if I am a drug dealer is there another form to fill in???

Only kidding thanks for the advice folks.
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Old Jan 5th 2010, 5:17 pm
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Default Re: Transferring Smaller amounts of money UK -> US

Originally Posted by BostonWeedgie View Post
And if I am a drug dealer is there another form to fill in???
Actually yes. You have to report all income from illegal sources when you file taxes. That's how they got Al Capone in jail.

Welcome to America.
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Old Jan 5th 2010, 6:54 pm
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Default Re: Transferring Smaller amounts of money UK -> US

xoom.com would be a good one for small sums, but for £20K I'd go with the suggestions in the other thread, xe.com hifx.com etc.

Just need to figure out if you have any capital gains due or not, and what your status in the US is as that might make a difference.
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Old Jan 6th 2010, 3:38 pm
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Default Re: Transferring Smaller amounts of money UK -> US

Originally Posted by BostonWeedgie View Post
The cash is coming from the sale of my house back in the UK
If you lived in that house for 3 out of the last 5 years, and no part of the house was used exclusively for business purposes, then the overwhelming probability is that you don't owe any CGT.

Just transfer the cash using ukforex/xe/hifx and get on with your life.
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Old Jan 7th 2010, 5:36 pm
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Default Re: Transferring Smaller amounts of money UK -> US

What would be the situation for a maturing endowment policy ? - in the UK this would have been used to pay off the principal on a house and was tax free - if this transferred to the US is used to pay principle on a primary home here is there any tax liability ?
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