Any Accountants out there?

Wiseman_Vaughn

Wiseman_Vaughn

Well-known member
Morning!

I have a very boring question but I'm sure that accountant will be able to help.

I have an old offshore Investment, set up when I worked abroad.
When I came back, I just left it alone, not really knowing what to do with it.
However, now I could do with tapping into some of investment.

My question is, How much are you allowed to transfer into the country every year without incurring tax?

Many thanks in advance!

W_V
 
All UK residents are taxed on their worldwide income. Your first job is to ensure that any income earned from this investment has been included on your UK tax return..

As to your question, there is insufficient information. You should retain the services of an accountant who can advise accordingly.
 
I did
13point8 said:
All UK residents are taxed on their worldwide income. Your first job is to ensure that any income earned from this investment has been included on your UK tax return..

As to your question, there is insufficient information. You should retain the services of an accountant who can advise accordingly.
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I'm employed so don't submit a tax return.
I was under the impression that because the bond was held in Jersey, that it was visible to the taxman.
 
Just wondering why you are avoiding tax?
Our public services could do with a bit more
 
Wiseman_Vaughn said:
I did

I'm employed so don't submit a tax return.
I was under the impression that because the bond was held in Jersey, that it was visible to the taxman.
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Just because you are "employed" doesn't necessarily mean you don't submit a tax return. A tax return sweeps up any untaxed income (interest, dividends, property income, etc.), including worldwide income, subject to various de minimis limits depending on the type of income.

HMRC do have reciprocal arrangements with other jurisdictions which allows them access to information regarding taxpayer's overseas assets. But, you still need to report any overseas income or capital gains in the UK.
 
Brian Marwood said:
Unless there is an agreement between the UK and that particular country which allows tax to be paid locally instead.
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Yes, you may have to pay tax locally, but generally you need to make a specific claim for overseas tax paid on your UK tax return. And then pay any difference in tax rates to the UK tax authorities, if required.
 
Wiseman_Vaughn said:
Morning!

I have a very boring question but I'm sure that accountant will be able to help.

I have an old offshore Investment, set up when I worked abroad.
When I came back, I just left it alone, not really knowing what to do with it.
However, now I could do with tapping into some of investment.

My question is, How much are you allowed to transfer into the country every year without incurring tax?

Many thanks in advance!

W_V
Click to expand...
I assume its some sort of offshore bond, so everything you realise and transfer in counts as the top splice of income for the tax year it enters the UK . So if you are earning over £12570, you will be paying tax on it @20% and if earning over £50270 @40%. It sounds like the initial investment was from untaxed income, given its held in Jersey, so all will need to be taxed as you move it into the UK. (Had you invested from UK taxed income then just the growth would be taxed).
 
Wiseman_Vaughn said:
Morning!

I have a very boring question but I'm sure that accountant will be able to help.

I have an old offshore Investment, set up when I worked abroad.
When I came back, I just left it alone, not really knowing what to do with it.
However, now I could do with tapping into some of investment.

My question is, How much are you allowed to transfer into the country every year without incurring tax?

Many thanks in advance!

W_V
Click to expand...
If the investment was bought with money earned abroad, and therefore not taxed in the UK, you will pay tax at your marginal rate on everything you repatriate.

If the investment was bought with money taxed in the UK, then you pay tax at the marginal rate on the increase in value only.
 
Soutra said:
If the investment was bought with money earned abroad, and therefore not taxed in the UK, you will pay tax at your marginal rate on everything you repatriate.

If the investment was bought with money taxed in the UK, then you pay tax at the marginal rate on the increase in value only.
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Many thx!

Yes - The money was earned over a period of time while I was not a UK resident and I was always under the impression that it wasn't taxable until I brought it back here.

I was under the impression that the tax would be calculated on the capital gains but that there isa tax free allowance per annum?
I think I maybe need to employ an accountant to look at the amounts.
 
Wiseman_Vaughn said:
Many thx!

Yes - The money was earned over a period of time while I was not a UK resident and I was always under the impression that it wasn't taxable until I brought it back here.

I was under the impression that the tax would be calculated on the capital gains but that there isa tax free allowance per annum?
I think I maybe need to employ an accountant to look at the amounts.
Click to expand...
if it qualifies as a capital gain, you can make gains of £12,300 per tax year before any tax is due, but its hard to see how it can be a taxable gain, as whatever you invested in was done with overseas untaxed income, so its not just a gain that is being taxed, its the whole income being brought into UK.

you needs to show the statement / investment documentation to a tax accountant to be sure.
 
Wiseman_Vaughn said:
Many thx!

Yes - The money was earned over a period of time while I was not a UK resident and I was always under the impression that it wasn't taxable until I brought it back here.

I was under the impression that the tax would be calculated on the capital gains but that there isa tax free allowance per annum?
I think I maybe need to employ an accountant to look at the amounts.
Click to expand...
Since you weren't residing in the UK when you bought the investment, then when you bring back anything from it to the UK, it's classed as income. Whatever the amount is, it may bump you into a higher tax band. If you have paid any tax abroad on the investment, then that'll normally be deducted from what you owe HMRC, assuming there's a tax treaty (there nearly always is).

To make use of an ISA, you have to organise it in the UK, from UK funds, and it needs to be a dedicated account - whether cash or shares. There is a Capital Gains allowance too, but that may not apply in your case.
 
t4tomo said:
if it qualifies as a capital gain, you can make gains of £12,300 per tax year before any tax is due, but its hard to see how it can be a taxable gain, as whatever you invested in was done with overseas untaxed income, so its not just a gain that is being taxed, its the whole income being brought into UK.

you needs to show the statement / investment documentation to a tax accountant to be sure.
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Is this per year since the investment was made, or per year when gains are realised?

Example:

I invested £10k ten years ago, it is now worth £100k. I want to cash out for a £90k profit.

Do I pay tax on (£90k - £12k =) £78k?

Or because I haven't touched this investment since I made it ten years ago do I get £12k x 10 years = £120k allowance and therefore pay no tax?

I suspect it's the first one :ROFLMAO: if so, how does the gain get calculated over multiple years? For instance if I cashed out £22k this tax year I wouldn't pay any tax (£10k capital, £12k allowance), I'm assuming if I waited until the next tax year started I could then also cash out another £12k tax free
 
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