Receiving a large sum from overseas - Tax implications?

Cook_County

So your wife has UK CGT to address, and will either file on the arising or the remittance basis to report any gain or loss.

seeafish

Cook_County wrote: »

So your wife has UK CGT to address, and will either file on the arising or the remittance basis to report any gain or loss.

Sorry, I'm really not familiar with the terminology. Arising and remittance??

Cheers.

Cook_County

Does she report worldwide income and gains on her UK returns or limit herself to reporting UK income?

seeafish

Cook_County wrote: »

Does she report worldwide income and gains on her UK returns or limit herself to reporting UK income?

Well she's been a student since she arrived here, and won't start working until early next year most likely, so no income so far.

She has no income coming from overseas either.

I guess if she had a job, she would report UK income only, as she does't have any overseas income.

Cook_County

The first thing you need to do is figure out the gain under UK rules. Once you know what this is you can then decide if she wants to pay UK tax on it or not. Because she is not domiciled within the UK she could elect to claim the remittance basis and then only pay tax on the gain to the extent it is remitted to the UK.

hermante

To save money on the transfer, see if the bank in Iran will let you convert to Pounds? Or even DKK and sending it to Denmark. Can the money be considered a gift from your father-in-law to you?

CLAPTON wrote: »

it's very unlikely that any vendor will accept an international transfer.

How do you explain the hordes of middle eastern and Chinese people buying up London then?

CLAPTON

hermante wrote: »

To save money on the transfer, see if the bank in Iran will let you convert to Pounds? Or even DKK and sending it to Denmark. Can the money be considered a gift from your father-in-law to you?



How do you explain the hordes of middle eastern and Chinese people buying up London then?

I would expect foreigners to transfer their money to a UK bank a/c and then buy the property from that UK bank a/c in UKPs.

MarcoM

John_Pierpoint wrote: »

A sum that large is likely to trigger an investigation by the UK receiving bank. Google "money laundering" for further details.
Not to mention that it will be over the £85K deposit guarantee.

I have no idea about the procedures in Iran, but Iran and "The West" are not on the best of terms at the moment, so the purpose of your wife's deposit might be "misconstrued".

[I had a colleague who was Argentinian - he had not worked there for 40 years, so it came as something of a shock when, during the "Falklands crisis" all his accounts were frozen, which included the one with his pay in it].

What sort of investigation would it trigger?
Would they freeze the money till they are happy?

I think it is unfair for a bank to do so. So much for living in a free society....

John_Pierpoint

.............Now smell the coffee.:D

http://www.lawsociety.org.uk/productsandservices/practicenotes/aml.page

http://www.hmrc.gov.uk/mlr/getstarted/intro.htm

Ah the good old days, when it took about five minutes to bounce into a Building Society and bounce out again with a new account.

MarcoM

John_Pierpoint wrote: »

.............Now smell the coffee.:D

http://www.lawsociety.org.uk/productsandservices/practicenotes/aml.page

http://www.hmrc.gov.uk/mlr/getstarted/intro.htm

Ah the good old days, when it took about five minutes to bounce into a Building Society and bounce out again with a new account.

So if one were to receive a significant inheritance from abroad would it mean they would have their money frozen till the authorities are happy?
Sounds like a dictatorship to me.