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Where Taxpayers and Advisers Meet

Remit funds from overseas bank account

Lc61
Posts:7
Joined:Wed Apr 08, 2015 12:22 am
Remit funds from overseas bank account

Postby Lc61 » Fri Jul 07, 2017 6:54 am

Hi all,

I'm a non UK national, but a resident in the UK with full time employment taxable at income.

I had an overseas bank account (non-EEA/EU) since 2000+ as a joint holder with my parents (they are non UK nationals).

Back in 2014, my father passed away, the joint account was closed and the funds transferred into a new account under my name as sole account holder.

I now wish to close off this account and remit the funds to the UK.

I believe it should be exempt from UK inheritance tax as my parents do not have any UK ties (Their visit was on holiday purposes, perhaps once every 2/3 years).

Questions:

1) Can the funds be considered a cash gift, as my mother has given to me?
2) As I wish to remit the funds to the UK, do I need to declare this to HMRC? as the overseas account belongs to me. The amount is around USD 174,000.

Many thanks!

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Remit funds from overseas bank account

Postby maths » Tue Jul 11, 2017 5:04 pm

Bit confusing post.

The joint account, you say, was held by you and (both) your parents. If this account was closed and all funds transferred into a sole account in your name then you still have the monies you credited to the former joint account but now in addition you appear to own the funds in the former account that belonged to parents and if so they have effectively gifted their monies to you.

If you bring all the monies back to the UK then the gifts of the monies by parents will incur no UK tax charges. The UK tax treatment of the monies that you owned within the original joint account may be subject to UK tax on remittance (if you are taxed on the remittance basis) or may have already been subject to UK tax if you were taxed on the arising basis. This also depends upon the nature of your monies (eg foreign earnings; foreign capital gains etc).


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