[MRM10]

I have an American Passport as well as a British One (just renewed it) In May I will be arriving back in England for good via a Cruise to Dover. Do I show my British Passport on arrival and tell them that I am here to stay?


2nd Question: If I wire transfer $100,000 into a savings account prior to leaving here that I opened with HSBC on my last visit, will I have to pay taxes of any kind on it. I was told by someone to just slowy transfer it in $9,000 increments over a period of time. My thought is that if I do that it might be then classed as income, am I correct? I do plan on keeping an account here for the purpose of buying gifts on line for family member here in the US.

Thanks for any help with these two items.

 

[Guest]

They wont ask or care if you are back stay or visit, just show your passport and your off

Depending on what for it could be classed as income anyway! ie for means tested benefits if its yours it's income where ever it is in the world in a lump sum or dribs and drabs! I'd have though it might not be income if you have to file a tax return if it's already earned income & taxed!

 

[Joppa]

I have an American Passport as well as a British One (just renewed it) In May I will be arriving back in England for good via a Cruise to Dover. Do I show my British Passport on arrival and tell them that I am here to stay?

Just show your British passport. Don't have to say anything. It will probably be put in the reader to open the chip to see that passport photo, you and image stored on chip all matach, and will be handed back to you, if you are lucky, with a smile.

2nd Question: If I wire transfer $100,000 into a savings account prior to leaving here that I opened with HSBC on my last visit, will I have to pay taxes of any kind on it. I was told by someone to just slowy transfer it in $9,000 increments over a period of time. My thought is that if I do that it might be then classed as income, am I correct? I do plan on keeping an account here for the purpose of buying gifts on line for family member here in the US.

You can just transfer the whole amount in one go, if you like. UK doesn't have wealth tax, so the only tax you pay is on interest and capital gain you make after returning to UK. I suggest you put in the full yearly limit into a cash ISA (£5640 for 2012-13) and the rest into your savings account. Shop around to see who is offering the best rate (you get around 3% for instant access and up to 4.5% for 4-year fix). Your interest will be paid net with 20% tax deducted at source, unless you register for gross payment on form R87 (most banks and others provide an online form you can complete and send off) if you aren't subject to income tax. Your first £8,105 (personal allowance for 2012-13) will be free of tax. Anything above to £34,370 you pay 20%, to £150k 40%, and 50% anything above.

If you transfer in or out a large amount, your bank may contact you to ask some basic questions about its source as part of anti-moneylaundering measure. Just say where it comes from - savings, inheritance, house sale etc, and they should be happy with that.

Find out in advance how much your bank will charge for transferring $ into £ account. Look at another thread on transferring money between US and UK to find ways of getting competitive exchange rate and commission.
It's a good idea to keep an account open in US to deal with any local payments, such as settling US credit card account.

 

[MRM10]

They wont ask or care if you are back stay or visit, just show your passport and your off

Depending on what for it could be classed as income anyway! ie for means tested benefits if its yours it's income where ever it is in the world in a lump sum or dribs and drabs! I'd have though it might not be income if you have to file a tax return if it's already earned income & taxed!

It is equity from the sale of a house. No profit but sadly an $80,000 loss.

 

[Bevdeforges]

If you've got an American passport, you have to keep filing those US income tax returns, no matter where you live. (See our Expat Tax section for more information on that.)

As far as transferring money from the US to the UK, all transfers over $10,000 have to be reported - but the bank will do all that for you. They may ask you the "purpose" of the transfer - to which you simply reply that you're moving to the UK. As long as the taxes were paid when you first got the money, it's considered a simple transfer of capital. Just remember to report your "overseas" accounts on an FBAR form once your balances exceed $10,000.
Cheers,
Bev

 

[MRM10]

Just show your British passport. Don't have to say anything. It will probably be put in the reader to open the chip to see that passport photo, you and image stored on chip all matach, and will be handed back to you, if you are lucky, with a smile.



You can just transfer the whole amount in one go, if you like. UK doesn't have wealth tax, so the only tax you pay is on interest and capital gain you make after returning to UK. I suggest you put in the full yearly limit into a cash ISA (£5640 for 2012-13) and the rest into your savings account. Shop around to see who is offering the best rate (you get around 3% for instant access and up to 4.5% for 4-year fix). Your interest will be paid net with 20% tax deducted at source, unless you register for gross payment on form R87 (most banks and others provide an online form you can complete and send off) if you aren't subject to income tax. Your first £8,105 (personal allowance for 2012-13) will be free of tax. Anything above to £34,370 you pay 20%, to £150k 40%, and 50% anything above.

If you transfer in or out a large amount, your bank may contact you to ask some basic questions about its source as part of anti-moneylaundering measure. Just say where it comes from - savings, inheritance, house sale etc, and they should be happy with that.

Find out in advance how much your bank will charge for transferring $ into £ account. Look at another thread on transferring money between US and UK to find ways of getting competitive exchange rate and commission.
It's a good idea to keep an account open in US to deal with any local payments, such as settling US credit card account.

Thanks so much, you are a bundle of information, I feel lucky to have found this site. I have a $ and a £ account at HSBC so I can wire it into the $ account and exchange it when rates are good. Not necessarily with the bank though. You have a good link on this site for exchanging money with good rates.

Is the income rate changing in 2012/2013, last I looked is was over £9,000?

 

[Joppa]

Thanks so much, you are a bundle of information, I feel lucky to have found this site. I have a $ and a £ account at HSBC so I can wire it into the $ account and exchange it when rates are good. Not necessarily with the bank though. You have a good link on this site for exchanging money with good rates.

Is the income rate changing in 2012/2013, last I looked is was over £9,000?

Above are the latest rates we have, though they may change in the Budget next month.

 

[mrsDayLewis]

It must be a lonnnnnnnnnng time since you have been back to UK. Through most airports and customs dept. there is a separate que/line for people with British Passport, and you virtually walk through and just hold up you passport. Also, much more fun - they have automated passport readers - you just stand on a special spot, place your passport down on the screen, and look up at a webcam thing. Then the gate opens and off you go.

 

[manny.j]

I have an American Passport as well as a British One (just renewed it) In May I will be arriving back in England for good via a Cruise to Dover. Do I show my British Passport on arrival and tell them that I am here to stay?


2nd Question: If I wire transfer $100,000 into a savings account prior to leaving here that I opened with HSBC on my last visit, will I have to pay taxes of any kind on it. I was told by someone to just slowy transfer it in $9,000 increments over a period of time. My thought is that if I do that it might be then classed as income, am I correct? I do plan on keeping an account here for the purpose of buying gifts on line for family member here in the US.

Thanks for any help with these two items.

Not sure which cruise you are traveling in but we have traveled transatlantic (NY to Southampton) via Cunard and the immigration check takes place in the middle of Atlantic i.e. there is no immigration when you arrive in England but during your trip

 

[MRM10]

Not sure which cruise you are traveling in but we have traveled transatlantic (NY to Southampton) via Cunard and the immigration check takes place in the middle of Atlantic i.e. there is no immigration when you arrive in England but during your trip

This Cruise is from Fort Lauderdale in Florida, it actually ends in Amsterdam stopping in Dover on day 14 then on to Amsterdam. I have requested to get off in Dover so I may be the only one. I did a cruise on the QM2 in its iinaugural year and indeed we did have to show our passports on board before arriving at St. Thomas. Thank you for the reminder I will be prepared for it. I have not used my British Passport for over 40 years, just kept renewing it. They really asked me loads of questions when I came into England on my US one last August, probably because I still have a half Yorkshire accent. I think I still have a full British accent but my relatives in the UK think otherwise.