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Where Taxpayers and Advisers Meet

Transfering money from Poland to the UK

mrgrim
Posts:3
Joined:Mon Mar 07, 2022 5:33 pm
Transfering money from Poland to the UK

Postby mrgrim » Mon Mar 07, 2022 6:16 pm

Hi All,

I have 2 questions in regards to transferring money from Poland to the UK

1) I have permanently moved to the UK in Jan 2017, I have not moved my savings though and left them with a polish bank where they earned some interest from savings bonds (during 2017-2020). I contacted HMRC and they advised that if I decided to move my money to the UK I would only pay tax on that earned interest. Will the total interest be calculated separately for each tax year or as a total interest and applied to the current tax year? That is crucial given 500 pounds personal allowance limit. And how exchange rate is worked out - official exchange rate for the day when interest was paid?

2) My parents would want to send me some money from Poland to the UK - are there any tax implications in the UK? Polish tax part is covered - no tax in this case there.

Thanks!

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: Transfering money from Poland to the UK

Postby Jholm » Tue Mar 08, 2022 11:46 am

1) The interest should have been declared in each tax year, as it arrives. As a UK resident, you are taxable on your worldwide income. HMRC advice is wrong, it doesn't get charged retrospectively or when you move the money. Therefore you will have the relevant personal savings allowance for each year.

2) No implications for you to receive cash

mrgrim
Posts:3
Joined:Mon Mar 07, 2022 5:33 pm

Re: Transfering money from Poland to the UK

Postby mrgrim » Tue Mar 08, 2022 12:37 pm

Thank you Jholm.

2) Just to clarify- it wouldn't be cash, it would be bank transfer. Still not tax implications for me in the UK?

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: Transfering money from Poland to the UK

Postby Jholm » Tue Mar 08, 2022 1:16 pm

Yes, that is still cash for this purpose

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Transfering money from Poland to the UK

Postby darthblingbling » Tue Mar 08, 2022 3:43 pm

How much was this annual interest?

I wonder if HMRC were assuming you claimed the remittance basis (or an automatic claim was made)

mrgrim
Posts:3
Joined:Mon Mar 07, 2022 5:33 pm

Re: Transfering money from Poland to the UK

Postby mrgrim » Tue Mar 08, 2022 4:23 pm

So in Poland these interests are taxed 19% (no allowance there) and this was automatically deducted, so got 81% on my account.
So when I added that 19% back (so total interest pre-tax) and then converted to GBP based on exchange rates from days when interest was paid to my account, it was aprox. 800, 1000 and 500 pounds for 3 different tax years.
Altogether, I paid more tax in Poland that I would have paid in the UK.

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

Re: Transfering money from Poland to the UK

Postby maths » Tue Mar 08, 2022 11:46 pm

I suspect darthblingbling re his domicile/rmittance comment is correct.


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