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Where Taxpayers and Advisers Meet

Money transfer

Marwa86
Posts:2
Joined:Sun Dec 15, 2019 8:22 am
Money transfer

Postby Marwa86 » Sun Dec 15, 2019 8:37 am

Hi
Me and my husband will move to UK soon as he got a job in NHS,we sold our main home in our home country and we want to transfer it's money to UK to keep it in a bank account to be able to use it in the future to buy a house there,will that money be taxed ?if not do we have to provide any document to prove that the house we sold was our main house? We are new to the system so we want to make sure of everything before transferring the money.
Thank you in advance

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Money transfer

Postby AGoodman » Mon Dec 16, 2019 7:20 pm

The act of transferring the money is not going to be a trigger for anything.

The only "trigger" is the sale of your old home, which is a disposal for capital gains tax. There are two reasons this is unlikely to be taxable:

1. Principal private residence relief (PPR) - this gives 100% relief if the property has been your main home over the full period of ownership (or other than the last 18 months). There are related reliefs that could apply if you have rented it out for part of the time or had to live away for work etc.

2. You likely qualify for split year treatment - i.e. you do not become UK tax resident for capital gains tax until you arrive in the UK (rather than being tax resident for the entire tax year). There is guidance on this here:

https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm12000

If you qualified then you would not have been UK tax resident when you sold the property so no UK tax is payable.

PPR does not have to be claimed so you do not have to claim anything unless HMRC open an enquiry and ask for it.

Marwa86
Posts:2
Joined:Sun Dec 15, 2019 8:22 am

Re: Money transfer

Postby Marwa86 » Tue Dec 17, 2019 3:02 pm

Thank you for your reply(agoodman).I really appreciate it if you can tell me what should we do before transferring the money?should we consult an accountant for confirmation or any other option please?


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