Euro's from Irish bank to UK bank - Tax implications
Euro's from Irish bank to UK bank - Tax implications
Author
Discussion

susanq

Original Poster:

638 posts

191 months

Tuesday 29th June 2010
quotequote all
Any tax experts out there? A relative has Euros in an Irish bank and wishes to move it to a UK Sterling bank account. What are the tax implications if any of doing this?

Eric Mc

124,049 posts

281 months

Tuesday 29th June 2010
quotequote all
On the transfer itself - none.

The question I would ask is, how did the individual acquire the balance in the Irish bank account in the first place?
If it was due to earnings from work done or income from investments or capital gains AND the individual was a UK tax resident at the time the money was received - THEN there could be UK tax implications.


susanq

Original Poster:

638 posts

191 months

Tuesday 29th June 2010
quotequote all
Eric Mc said:
On the transfer itself - none.

The question I would ask is, how did the individual acquire the balance in the Irish bank account in the first place?
If it was due to earnings from work done or income from investments or capital gains AND the individual was a UK tax resident at the time the money was received - THEN there could be UK tax implications.
Mmmmmmmmm? I think the relative recieves it as a pension from employment when in the Irish Republic. She is now resident in the UK.

Eric Mc

124,049 posts

281 months

Tuesday 29th June 2010
quotequote all
I assume she is subject to Irish tax being deducted at source on it then.

As she is now a UK resident, she is technically subject to UK tax on this income. However, she will receive a credit for any tax she has already paid in Ireland.

It looks to me that she should be considering completing a UK Self Assessment tax return.

As the basic capital in the bank was accumulated when working and living in Ireland, there would be no UK tax liability arising on the transfer of that cash balance into a UK bank account. Once the money is in a UK bank account, she will be liable to UK tax on the interest she receives on that interest.

susanq

Original Poster:

638 posts

191 months

Wednesday 30th June 2010
quotequote all
Thanks for your help. It looks as though the relative will get stung for UK tax as she has accumulated this whilst being resident in the UK.

Eric Mc

124,049 posts

281 months

Wednesday 30th June 2010
quotequote all
susanq said:
Thanks for your help. It looks as though the relative will get stung for UK tax as she has accumulated this whilst being resident in the UK.
Not necessarilly.

If it was accumulated in Ireland, was it subject to Irish tax?

In fact, if she was a UK tax resident WHILST she earned this income, then she is already under a legal obligation to declare that income to the UK authorities now.

ellroy

7,532 posts

241 months

Friday 16th July 2010
quotequote all
A point not raised is that if she were to make a gain on the transfer of one currency to another, then there is also the possibility of Capital Gains Tax being applicable.

Eric Mc

124,049 posts

281 months

Friday 16th July 2010
quotequote all
Only if the overall gains in any given tax year exceeded £10,100

klsrjs

1 posts

169 months

Monday 11th July 2011
quotequote all
a similar question....
we have now sold a property in france--no CGT liability due to number of years we've owned it.
we'd like to transfer some of the money to the UK where we've lived again & paid tax since 2002.
Will CGT be due on this money?
What is the best legal way of minimising any tax due?