Can I Send Money Back To The UK Untaxed?

Am I right in thinking that, as long as fewer than 90 days is spent in the UK in a tax year, then overseas earnings may be repatriated to the UK without attracting UK tax? Am I also right that these repatriated earnings may NOT be used for investment in individual savings accounts (ISAs)?

Adam Thompson, tax manager of The Fry Group, answers that the criteria for being non-resident for UK tax purposes changed with effect from 6 April 2013.

“Under the new legislation,” says Thompson, “your residence status is not simply determined by the number of days that you spend in the UK, but instead via a three part test. If you would like for one of our team to review your residence position under the new rules, please let me know.

“Assuming that you are non-resident, there is nothing to stop you from transferring funds to the UK. Please note however that any funds that you hold in the UK do come under the UK tax system and you may therefore have a UK tax liability on any income generated.

“As a non-resident you would as a general rule be unable to make contributions to an ISA. Any funds held in ISAs prior to becoming non-resident do retain their tax status.”

 

  • You can read more about the UK’s test to check if you are non-resident for tax purposes here