# Lump Sum from UAE to UK



## DED (Feb 24, 2013)

I am shortly returning to uk after staying in uae for 6 years
I had house and family in uk during this time but have only visited for 8-10 weeks per year except for one year when I was there for 13weeks
When in uae i had £50k transfered from uk to uae bank which was lost in an 'investment'!

now my question is 
If I send back £60k via bank transfer will I have to pay any tax on this money (that i have collected from employment in uae)?

do members have any thoughts or better still have experience in such matters?


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## Southak (Sep 13, 2010)

Given the amount of money involved I suggest you take paid financial advice. My understanding is that you may be liable for some tax but how much and why, I don't know. Do yuo have an offshore bank account? If you don't need the cash immeadiatley you return to the UK I suggest putting it in an offshore account. That way it's available to you when you need it but the tax man cannot get his hands on it!


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## HamishUK (Oct 20, 2009)

As you spent less than 183 days in the UK each year you were away you were non resident . As you earned the money in the UAE and have already been 'taxed' on it (at 0%) you do not have to pay tax again.

Seems pretty clear cut that you can send the money back to the UK without paying any tax on it.


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## motojet (Mar 11, 2008)

HamishUK said:


> As you spent less than 183 days in the UK each year you were away you were non resident . As you earned the money in the UAE and have already been 'taxed' on it (at 0%) you do not have to pay tax again.
> 
> Seems pretty clear cut that you can send the money back to the UK without paying any tax on it.


No offense to HamishUK but do you want to make a big financial decision based on an unknown poster in an internet forum? 

Again I mean no disrespect, HamishUK could very well be right but I would suggest getting professional advice.


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## Iron Horse (Apr 10, 2008)

As long as you can prove the money was earned outside of the UK and prove your resident status it should be pretty easy.

However, anyone working overseas concerned about taxes in their home country should have a tax consultant/attorney in their home country work for them.


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## Bostin (Jan 21, 2013)

Hi,

The rules were changed in the last budget about criteria for non-residence status.
My understanding is that there are now 5 tests for automatic non-residence - you'll need to google 'Finance Bill 2013' and 'Statutory Residence Test (SRT)'.

The 183 day rule that often gets quoted is misleading as it was less than 183 days in any one tax year, but an average of less than 91 over 4 years. That is you can't be in the uk for 182 days every year.

If you know that you how non-resident status, my own understanding is that you can return to the uk with the cash, which will not be taxed, but any interest you then earn will be taxed.

I'm not a tax expert, and as already mentioned you be advised to seek proper advice if your concerned.


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## Southak (Sep 13, 2010)

Bostin said:


> Hi,
> 
> The rules were changed in the last budget about criteria for non-residence status.
> My understanding is that there are now 5 tests for automatic non-residence - you'll need to google 'Finance Bill 2013' and 'Statutory Residence Test (SRT)'.
> .


This rings a bell. I had a phone call from a UAE-based financial adviser regarding my tax returns in the UK and she mentioned this same thing, that as of next tax year 2013/14 there would be additional hurdles to jump through regarding proving your non-resident status. Worth looking into.

If you are going to transfer some money back to the UK now is the time to do it, with the exchange rate so favourable - todays rate of 5.639 is at least 6% better than when I moved over two years ago (6.03 then) and is the lowest it has been for nearly three years.


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## blazeaway (Sep 28, 2011)

Southak said:


> This rings a bell. I had a phone call from a UAE-based financial adviser regarding my tax returns in the UK and she mentioned this same thing, that as of next tax year 2013/14 there would be additional hurdles to jump through regarding proving your non-resident status. Worth looking into.
> 
> If you are going to transfer some money back to the UK now is the time to do it, with the exchange rate so favourable - todays rate of 5.639 is at least 6% better than when I moved over two years ago (6.03 then) and is the lowest it has been for nearly three years.


I use a UK tax advisor who sorted out my no tax status with my UK based employer, my tax return, and various hiccups due to incompetent UK HR. they were very good and very experienced being ex HMRC.

Pm if you want their details


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## nikkisizer (Aug 20, 2011)

HamishUK said:


> As you spent less than 183 days in the UK each year you were away you were non resident


This is not correct, under the old residency rules if you spent less than 183 days in the UK in each tax year you could still be treated as UK resident for the year if you visited the UK regularly and your visits averaged 91 days or more a tax year over a period not exceeding four years.

Residency is a very complex area and the existing HMRC UK residency rules have changed with effect from the 2013/2014 tax year which involves the new statutory residence test (SRT). 

Ties such as home, work, family etc. in the UK may class you as UK resident for tax purposes regardless of where you reside. 

If classed as UK resident under the new (SRT) you would then be taxed on your worldwide income so it is very important that your individual circumstances are dealt with correctly to protect your residency status and exposure to UK taxation.


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## Elphaba (Jan 24, 2008)

I've posted these before but these links are relevant:

Information on the new UK Statutory Residency Test | Financialuae's Blog

Thinking of moving your Dirhams or Dollars to Sterling? Want the best rates? | Financialuae's Blog

Be wary about who you take tax and financial advise from. These are complicated issues and too many people get it wrong.


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