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Where Taxpayers and Advisers Meet

Transfer of funds to UK

imanhabib1
Posts:3
Joined:Sun May 21, 2023 12:16 am
Transfer of funds to UK

Postby imanhabib1 » Sun May 21, 2023 12:26 am

Hi,
I am a British citizen residing in the UK and we are planning to purchase some medical equipment for over 2 million pounds. My investor is based in UAE, Dubai and want to transfer the funds to my business account first. The little information I have is to let my bank have the information where the funds are coming from and for what purpose. However, our concerns remain as to whether we are ought to pay any tax on this or will my bank froze the funds for any investigation if yes what would be the time scale?

I need advise in best course of action when transferring large sum of capital from abroad into the UK bank account for personal as the product we purchasing will be shipped abroad to UAE.

AGoodman
Posts:1723
Joined:Fri May 16, 2014 3:47 pm

Re: Transfer of funds to UK

Postby AGoodman » Mon May 22, 2023 2:36 pm

Whether it is taxable depends on the nature of your business, the payment and your relationship with your investor. If he is a genuine investor then a simple transfer of money is unlikely to be taxable but it needs to be properly considered by somebody with the full facts.

If you are making transactions of £2m - and particularly if you are exporting £2m of goods, you need proper advice from an accountant who can handle business taxation, VAT and customs issues.

The bank's reaction will depend entirely on whether the transaction is suspicious. If you previously had a turnover of £15k, you may want to talk to them first. If this is a transfer into your personal account, you REALLY want to talk to them first. It's not a tax issue, its a money laundering issue.


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