Any tax implications when transferring money into UK if non-resident?

June 15, 2015 7:07 AM

I am a non-resident Briton who has built up a substantial amount of savings while working abroad. This money was earned from employment in foreign countries and was taxed in those countries. Are there any tax implications if I transfer some or all of this money from my offshore bank account into my UK bank account? Is there a limit to how much I can transfer into my UK account? From what I have read so far, this answer is "no" and "no", however I am nervous about tax and would appreciate some reassurance...
posted by teselecta to Work & Money (3 answers total)

Yes there are issues. You would owe tax on the remittance, net of taxes already paid. Its complex.
posted by JPD at 7:52 AM on June 15, 2015

Response by poster: JPD - Doesn't tax on remittance only become an issue if I am non-domiciled (which I am not), or if I become resident in the UK (which I have no plan to at the current time)? My understanding is that as long as I remain non-resident, and the income is taxed in the country in which I am resident, transferring the net income back to the UK should not matter.

Otherwise, if all money brought into the UK is taxable, if I were to return to the UK for a short vacation, surely I would then owe tax every time I withdrew money from an ATM (or, indeed, bought anything)?
posted by teselecta at 8:39 AM on June 15, 2015

My understanding is that if the Inland Revenue agrees that you are not resident in the UK for tax purposes then you can transfer cash in and out of UK bank accounts as you please. The Inland Revenue rules about residence are outlined here, but as with all these things, the real rules are probably more complex and less well specified!
posted by pharm at 11:23 AM on June 15, 2015