Tax implications for bringing back monies into the UK

The Tax Laws are, as you can imagine, extremely complex and frequently changing. In the case of assets being repatriated to the UK, it will need to be determined how the asset(s) arose and therefore some of the questions you should think about are:

  • Where did the monies originate from. Did you transfer the funds out to that jurisdiction from the UK, having already paid tax on the original funds in the UK and are simply returning the balance to the UK.
  • Is there a Dual Taxation Agreement between the UK and the Jurisdiction from where the assets are coming. HMRC list the countries with which there are Double Taxation agreements www.gov.uk/government/collections/tax-treaties-signed-and-in-force
  • Are you now deemed to be Domiciled in the UK.
  • Are the Assets due to or from a Deceased’s Estate.

If you are Domiciled in the UK, then this is where the tax liabilities are most likely to be determined. Some of the issues for an individual will be if the assets are a) subject to Capital Gains Tax, whereby you need to know what Gain or Loss has been incurred and whether this exceeds the exemption which is currently £11,100 per year, b) Does the asset relate to Income Tax and how this effects your overall Income Tax position in the UK and c) Inheritance Tax maybe due if the assets exceed the exemption applicable in the relevant year. Currently an individual’s exemption is £325,000 however, if all is left to the surviving husband, wife or civil partner then there will generally be no Inheritance Tax to pay. There is also the possibility of transferring Inheritance Tax Thresholds as outlined by HMRC www.gov.uk/inheritance-tax/leaving-assets-spouse-civil-partner

If you are in any doubt as to whether there is tax due in the UK then you should contact an appropriate accountant or contact HMRC, who may be able to help and if not they will suggest you contact an accountant for advice.