Bringing large amounts of money into the country?

GreenMint · 20 Feb 2013 at 12:01

Just a quick question for a friend of mine, his family moved over here from Madagascar a few years ago now, all aside from his Dad who stayed there to keep his business running.

He has since sold the business, is planning to move here and wants to bring everything over (in essence between £250-£300K) and is not sure how to do it, how to declare it, what tax you pay etc..? (He is aware you can ony bring in £20,000 cash)

He claims to have looked arond and seen lots of conflicting advice, as well as something saying you are taxed 40% of anything over £70K, which sounds like it may be about accurate.

Any ideas anyone?

jsmoke · 20 Feb 2013 at 12:07

Probably why a lot of people keep their money in various offshore accounts.

Bat · 20 Feb 2013 at 12:08

I'd say the cost of a financial advisor would be money extremely well spent here!

bitslice · 20 Feb 2013 at 12:09

Ten or so return flights, £20K each time.
Or about five because I wouldn't mind helping for a free holiday every month

mo9204 · 20 Feb 2013 at 13:21

i tough the limit was the amount of cash you can take out of the country, not the amount you bring in. the UK will lose out if they limit the amount of money you can bring to the country, tell him to bring it in suit case.

Haggisman · 20 Feb 2013 at 13:23

Whatever you do, don't exchange it at the Post Office!

King4aDay · 20 Feb 2013 at 13:50

Would also be inrterested in knowledgeable answers to this.... my gf has about £20k in euros in a Dutch bank that she'd like to turn into pounds now that the exchange rate isn't too bad.

Hostile-17 · 20 Feb 2013 at 14:03

King4aDay said:
Would also be inrterested in knowledgeable answers to this.... my gf has about £20k in euros in a Dutch bank that she'd like to turn into pounds now that the exchange rate isn't too bad.

Can she not request a bank transfer for one back to another?

arknor · 20 Feb 2013 at 14:05

Just deposit it into my bank account and I will withdraw £300 a day for them (or whatever the limit is)

Col_M · 20 Feb 2013 at 14:08

King4aDay said:
Would also be inrterested in knowledgeable answers to this.... my gf has about £20k in euros in a Dutch bank that she'd like to turn into pounds now that the exchange rate isn't too bad.

As long as she paid any tax due on the money in NL then she won't be liable for any tax in the UK as both countries are in the EU, you can transfer what you want.

Just set up a payment in her online banking, I do it all the time between CZ and the UK.

King4aDay · 20 Feb 2013 at 14:09

Col_M said:
As long as she paid any tax due on the money in NL then she won't be liable for any tax in the UK as both countries are in the EU, you can transfer what you want.

Just set up a payment in her online banking, I do it all the time between CZ and the UK.

Excellent - I'd hoped it would be as simple as that.

RoboCod · 20 Feb 2013 at 14:15

TimBrad said:
He claims to have looked arond and seen lots of conflicting advice

Which is absolutely NOT what you will get here.

GreenMint · 20 Feb 2013 at 14:17

Captain Planet said:
Which is absolutely NOT what you will get here.

Along with "useful" comments

Diagro · 20 Feb 2013 at 14:20

Cant he just Transfer it to a UK bank and hide from the tax man? lol

ZXSpectrum · 20 Feb 2013 at 14:21

bitslice said:
Ten or so return flights, £20K each time.
Or about five because I wouldn't mind helping for a free holiday every month

LOL.. Err thats still 10 flights

5 for him and 5 for you..

RoboCod · 20 Feb 2013 at 14:35

TimBrad said:
Along with "useful" comments

So why waste your time making a thread and reading useless comments along the lines of "ALL ON BLACK" and "GIVE IT TO ME! LOL! PROFIT ?????" when questions like this should be answered correctly by someone qualified to do so. That is the best advice you will get, and it was given earlier.

demonix · 20 Feb 2013 at 14:48

If I remember well enough (thanks to all these customs programs I keep watching) you have to declare any cash brought into the UK that is over £10,000 to customs on entry, but I'm not sure if they would either charge tax on the amount or just request that some kind of form (along with proof that the money is that persons) is filled in before being let into the country.

GreenMint · 20 Feb 2013 at 15:00

Captain Planet said:
So why waste your time making a thread and reading useless comments along the lines of "ALL ON BLACK" and "GIVE IT TO ME! LOL! PROFIT ?????" when questions like this should be answered correctly by someone qualified to do so. That is the best advice you will get, and it was given earlier.

And you want me to do what? Lock the thread now, sorry, I don't have the ability to do that!

Unless you're pretty new to here, which you don't seem to be, then you'll know a question is asked, a few spammy anyswers come in, a correct/helpful answer comes in, someone whines "Why ask on here?" Its the way it works...

RoboCod · 20 Feb 2013 at 15:12

How would you know which is the correct answer? If you knew the correct answer then you wouldn't need to ask the question? :confused:

Not intentionally being an ass, I'm just thinking out the logic here.

You already knew what the answer would be, which was "go see someone qualified to give you the advice you want". It would be the same for any question requiring someone specialised in the field. Like a doctor, a physician, a mortgage advisor, etc.

grimm · 20 Feb 2013 at 15:17

Best to see a financial adviser.

The basic advice will be to open an offshore bank account and keep the money in there until it is required. This will minimise any immediate and future tax liabilities, but all of this will depend upon their full circumstances.

There will be other factors to take into account such as whether or not he is still UK resident for tax purposes.

If it has only been "a few" years then he will be classed as a temporary non resident (if at all). This is the type of thing that will need to be clarified.

If he was to transfer it into a UK bank account it will immediately begin to attract tax on the interest.

Wherever the money goes he will have to provide proof of where that money has come from ie. sale of property or similar. If the proceeds of something like this are remitted back to the UK then it is probable that capital gains tax will be payable.