Is a transfer of 100k within the UK from a friend taxable?

govigta

Amna350 -- Why is it taxable? Wouldn't it just count as a gift? If I decided to gift you 100k why would that be taxed?

whitewing -- thanks - what do you mean by "to others"?

There won't be a legal agreement because I know this person -- he simply transfers here and my auntie will give him the money either through transfer or cash back in Iraq. Trust is not an issue here. Simply wondering if it's all okay and what I need to be aware of?

I could transfer the amount 10k per month but that would take a very long time. That's why I went into this arrangement with this family friend, because he needs money on the other side and I need money on this side. So technically its an exchange, but would basically appear as a single transfer to me here in the UK.

Do you think I should ask my bank again?
I already had an appointment and the person I spoke to said it was all fine-- I mentioned the details and the amount of 100k -- I asked if it would be better to transfer from UK account to my UK account or from non-UK account to my UK account-- they said it wouldn't matter. They didn't seem too concerned and said all I'd get would be a phone call asking where it came from, but that because I'd made an appointment they'd put this on their system in advance.

FOR ALL INTENTS AND PURPOSES - this is like a friend transferring 100k to another friend here in the UK? Is it really that big of a deal? I've had friends transfer me amounts of 2k before. I know 100k is a lot of money but why would they suspect laundering?

le_loup

amna350 wrote: »

Yes, it is taxable.

No it isn't.
If you don't know, don't post.

Caz3121

le_loup wrote: »

No it isn't.
If you don't know, don't post.

poster is posting nonsense on a few threads
few words and mostly wrong
effort to up post count and start spamming I reckon

Fruit_and_Nut_Case

Caz3121 wrote: »

poster is posting nonsense on a few threads
few words and mostly wrong
effort to up post count and start spamming I reckon

Yes, I've been round marking them all as :spam:

badger09

Caz3121 wrote: »

poster is posting nonsense on a few threads
few words and mostly wrong
effort to up post count and start spamming I reckon

Probably some nice shiny fake passports for us :eek:

agrinnall

Fruit_and_Nut_Case wrote: »

Yes, I've been round marking them all as :spam:

Me too, so it's disappointing to see they are still here.

Cook_County

Is the transaction legal in Iraq and local banking, tax and foreign exchange rules? What are the tax effects in Iraq?

Thrugelmir

govigta wrote: »

FOR ALL INTENTS AND PURPOSES - this is like a friend transferring 100k to another friend here in the UK? Is it really that big of a deal? I've had friends transfer me amounts of 2k before. I know 100k is a lot of money but why would they suspect laundering?

Why wouldn't they. They only have your word for it. Banks have regulatory responsibilities which outweigh any obligations to you as a customer.

govigta

Cook_County --

Issue isn't Iraq -- everything over there is legal and above board.
As I explained, I COULD transfer the money from Iraq 10k per month, but that would take too long so I've gone into this mutual beneficial arrangement with this family friend and have him transfer the 100k from his UK bank account to my UK account. He will receive the 100k in cash back in Iraq, so that's not a problem.

I was only asking because I checked with the bank and they said it was okay but I wanted to make sure it would all be okay as I haven't got time for regulatory headaches once the money has been transferred.

Thrugelmir

I understand all of this - I was simply asking about why they would be suspicious if I'd already explained it all. After all, this is a friend giving another friend 100k, it's not like I'm transferring 10 million from a bank in Lagos, Nigeria as part of some inheritance scam.

I'm only curious about any tax/regulatory issues which might arise.

CKhalvashi

amna350 wrote: »

Yes, it is taxable.

How?

Gifts aren't taxable immeiately in any circumstances.

govigta wrote: »

Cook_County --

Issue isn't Iraq -- everything over there is legal and above board.
As I explained, I COULD transfer the money from Iraq 10k per month, but that would take too long so I've gone into this mutual beneficial arrangement with this family friend and have him transfer the 100k from his UK bank account to my UK account. He will receive the 100k in cash back in Iraq, so that's not a problem.

I was only asking because I checked with the bank and they said it was okay but I wanted to make sure it would all be okay as I haven't got time for regulatory headaches once the money has been transferred.

Thrugelmir

I understand all of this - I was simply asking about why they would be suspicious if I'd already explained it all. After all, this is a friend giving another friend 100k, it's not like I'm transferring 10 million from a bank in Lagos, Nigeria as part of some inheritance scam.

I'm only curious about any tax/regulatory issues which might arise.

The issue isn't Iraq at all, the main issue is that £100k is being transferred from abroad, where it can't be easily checked.

I know very little about the Iraqi banking system, however if it's anywhere near as disorganised as Georgian systems (where I regularly send large sums), then I can see huge regulatory issues with the transfer from the UK banks POV, even if the transfer is completely legit. This has been made worse in Georgia now HSBC have pulled out, so be prepared for issues with them releasing the money.