Sending money from Dubai to UK

[Andrew Farrant]

Guys, my sister works in the ex pat department at HMRC and I finally got some answers from her last night - you are right about the "portion" of the tax year you become ex-pat and the times allowed are as follows :

To remain ex-pat and therefore not liable for UK tax you must not :

1 - spend more than 183 days in the UK in any one year (6 months) OR

2 - AVERAGE more than 91 days per annum in the UK over a rolling four year period

so for example, you spend 90 days back home per annum in years 1, 3 and 4 but in year 2 you spent 100 days ........ guess what ? The thieveing so and so's nail you for tax because your rolling average is too high.

You don't come home in years 1, 2 or 3 but in year four you spend 190 days, they nail you for tax because you have blown the single year limit.

However, most of us won't have sufficient holiday to spend that much time in the UK so we will be ok. So what about bringing the money home ?

There is NO LIMIT to the amount of funds you can bring home without incurring tax liability if you can prove you earned it as an ex-pat with P85 tax exemption, however, you will be taxed on any interest than you earn on the savings you have deposited here because the interest was earned in the UK.

My sister pointed out though that no matter where you live and where you earn, you will ALWAYS have your UK tax free allowance so unless your savings are significant and your interest pretty high, you can offeset the interest earned against your tax free allowance

I have contacted my mortgage company who are more than happy to receive payment from a dubai bank.

Boy do I feel relieved now :-)

[Andrew Farrant]

[QUOTE=rj[B].uk;117883]Is this a transfer per month or at any one time??? e.g. 2 transfer of below £3000 in a month- does this qualify as being over the limit and will be reported?[/[/B]QUOTE]

I sold my car because I am coming over, got paid mainly in cash but got £6,000 cheque. When I paid it in I got called to the bank managers office to fill forms in detailing where the cheque came from and what the payment was for - he apologised and said they now have to document all transactions of over £2,500 to guard against money laundering.

[rj.uk]

Originally Posted by Andrew Farrant

Guys, my sister works in the ex pat department at HMRC and I finally got some answers from her last night - you are right about the "portion" of the tax year you become ex-pat and the times allowed are as follows :

To remain ex-pat and therefore not liable for UK tax you must not :

1 - spend more than 183 days in the UK in any one year (6 months) OR

2 - AVERAGE more than 91 days per annum in the UK over a rolling four year period

so for example, you spend 90 days back home per annum in years 1, 3 and 4 but in year 2 you spent 100 days ........ guess what ? The thieveing so and so's nail you for tax because your rolling average is too high.

You don't come home in years 1, 2 or 3 but in year four you spend 190 days, they nail you for tax because you have blown the single year limit.

However, most of us won't have sufficient holiday to spend that much time in the UK so we will be ok. So what about bringing the money home ?

There is NO LIMIT to the amount of funds you can bring home without incurring tax liability if you can prove you earned it as an ex-pat with P85 tax exemption, however, you will be taxed on any interest than you earn on the savings you have deposited here because the interest was earned in the UK.

My sister pointed out though that no matter where you live and where you earn, you will ALWAYS have your UK tax free allowance so unless your savings are significant and your interest pretty high, you can offeset the interest earned against your tax free allowance

I have contacted my mortgage company who are more than happy to receive payment from a dubai bank.

Boy do I feel relieved now :-)

Thank you for that. I haven't been called to the bank yet after receiving the remittance from hubby twice in the month

[Lee1971]

Originally Posted by Andrew Farrant

Guys, my sister works in the ex pat department at HMRC and I finally got some answers from her last night - you are right about the "portion" of the tax year you become ex-pat and the times allowed are as follows :

To remain ex-pat and therefore not liable for UK tax you must not :

1 - spend more than 183 days in the UK in any one year (6 months) OR

2 - AVERAGE more than 91 days per annum in the UK over a rolling four year period

so for example, you spend 90 days back home per annum in years 1, 3 and 4 but in year 2 you spent 100 days ........ guess what ? The thieveing so and so's nail you for tax because your rolling average is too high.

You don't come home in years 1, 2 or 3 but in year four you spend 190 days, they nail you for tax because you have blown the single year limit.

However, most of us won't have sufficient holiday to spend that much time in the UK so we will be ok. So what about bringing the money home ?

There is NO LIMIT to the amount of funds you can bring home without incurring tax liability if you can prove you earned it as an ex-pat with P85 tax exemption, however, you will be taxed on any interest than you earn on the savings you have deposited here because the interest was earned in the UK.

My sister pointed out though that no matter where you live and where you earn, you will ALWAYS have your UK tax free allowance so unless your savings are significant and your interest pretty high, you can offeset the interest earned against your tax free allowance

I have contacted my mortgage company who are more than happy to receive payment from a dubai bank.

Boy do I feel relieved now :-)

Why not just open an Offshore account with HSBC, RBSI, LloydsTSB...this would tick all the boxes? I may be wrong and if so will undoubtedly be corrected by Elphaba who I think is an accountant, but the way I understand it is that for most of us, you will only pay tax on savings interest if your UK source income makes you a higher rate tax payer. The 91 day 180 day rules apply to non resident and not ordinarily resident, cute but important differences!

[ccieccvpccip]

Hi Guys,

I live in UK and my sister live in Dubai. I am about to buy a house in UK, where I need some money as a deposit to get the mortgage. She informed me that she will helping by getting a loan from Dubai and send it across to Uk. Does anyone know what is the maximum money she can transfer from Dubai to UK. Is there any restriction to transfer like say £20,000 on one stretch. Can anyone explain it to me.....

Much appreciated for help in advance.

Cheers.

Ram

[Elphaba]

Originally Posted by ccieccvpccip

Hi Guys,

I live in UK and my sister live in Dubai. I am about to buy a house in UK, where I need some money as a deposit to get the mortgage. She informed me that she will helping by getting a loan from Dubai and send it across to Uk. Does anyone know what is the maximum money she can transfer from Dubai to UK. Is there any restriction to transfer like say £20,000 on one stretch. Can anyone explain it to me.....

Much appreciated for help in advance.

Cheers.

Ram

The only real restriction is the amount the bank will allow you to transfer in one go. The UK bank may also require additional infirmation to satisfy EU ant money laundering regulations.

For currency transfers in excess of AED60K/GBP10k etc you can access wholesale rates, rather then the poorer rates offered by retail banks too.

-

[Paul_in_AD]

With regards to how to qualify for a non-resident, how does the 90 day rule work if I left the uk after the beginning of the tax year? For example, I left in early May 2009 and want to know if I can return to UK in May 2010 yet still meet the rules to not pay tax in the 09/10 tax year (having spent no time in the UK since I left)?

[Elphaba]

Originally Posted by Paul_in_AD

With regards to how to qualify for a non-resident, how does the 90 day rule work if I left the uk after the beginning of the tax year? For example, I left in early May 2009 and want to know if I can return to UK in May 2010 yet still meet the rules to not pay tax in the 09/10 tax year (having spent no time in the UK since I left)?

For the 2009/10 year you would be treated as non-resident on the basis that you spent less than 90 days in the UK, your work was outside and you requested non-resident status (HMRC form P85).

For the 2010/2011 tax year, assuming you become UK resident again in May, all earnings will be subject to UK tax from 6th April onwards.

-

[alfiecat]

i have been an expat since jan 2007. I have filled out the form P85 and am classed as non resident.

I now want to return to UK but need to get my timings correct to avoid the tax man

1. I have spend 32 days in UK since apr 2010.

When can i physically take up a new job in UK without having to pay any of this years tax which has been earnt over here.

thanks

[Dozza]

Originally Posted by alfiecat

i have been an expat since jan 2007. I have filled out the form P85 and am classed as non resident.

I now want to return to UK but need to get my timings correct to avoid the tax man

1. I have spend 32 days in UK since apr 2010.

When can i physically take up a new job in UK without having to pay any of this years tax which has been earnt over here.

thanks

90 Days in a tax year (In the UK) and you do not pay. So if you have been in the UK for 32 days in the current tax year this gives you 58 days left.

I have fallen short many times & just not declared any earnings from overseas.....To date I have never paid tax on any of it. You may be one of the unlucky one's who gets caught though