How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Sam Your Own Question

Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13712
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

Hi Sam, Ive been living in a non-EU country with my wife

Resolved Question:

Hi Sam,

I've been living in a non-EU country with my wife and kids for the last ten years. I and kids are British nationals and wife has a non-EU passport. During the last ten years, I've kept a joint bank account with my wife in the UK and visited wider family over summer holidays and then returned abroad to my place of work with wife and kids.
I now wish to return to the UK and apply for my wife's settlement visa. One of the visa requirements is 'financial requirement'. I have cash savings in a bank abroad and receive rental income from a property in Dubai (don't live there). If I was to bring these savings (cash, rental income, proceeds from sale of property abroad) back home to the UK, would I be liable to pay any tax on them? Once in the UK, would I be entitled to Child Tax Credits?

Thanks
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi

Thanks for your question and asking for me.

You do NOT become liable to tax on money you remit the UK, that has accrued during your time abroad.

But IF the rental income were to continue once you arrive back into the UK then this would need to be declared to the UK tax office (HMRC)and if the sale of the property that generates the rental income, takes place prior to your return to the UK, then a UK tax liability will arise under the capital gains regime.

I cannot advise whether you would be entitles to child tax credits or child benefit as these are all means tested - so dependent on your level of income - which you have not advised on.

But I have added links here for
Child tax credit (also looks at working tax credit) which is a calculator allowing you to enter personal details into it to establish whether a valid claim is due

https://www.gov.uk/tax-credits-calculator
And child benefit entitlements
https://www.gov.uk/child-benefit

for your information

Thanks

Sam



Customer: replied 2 years ago.

Dear *****,


 


Many thanks for your reply. Just need a clarification: ALL the money that I saved up during the last ten years is still abroad in a foreign bank account. If I was to bring that here as a lump sum (GBP 63k) now in the tax year 2014/15, would it still be exempt from any tax liability in this tax year?


Since child tax credit is 'means tested', does that mean I won't get with savings of 63k? The calculator didn't allow me to enter any savings so just want to confirm.


 


Many thanks in advance for clarifying the above mentioned.

Expert:  Sam replied 2 years ago.
Hi Mohammad

Thanks for your response

Yes that's right - all the money you saved up during the time abroad would be exempt from all and any tax liability when brought into the UK (whether this done before you arrive, or after you arrive)

Savings affect tax credits and child benefit -

For tax credits and for child benefit they use just the interest earned to add to your annual income to establish the overall position, and if the highest earner has income is in excess of £50,000 then this affects the entitlement but if these savings were in you and your wife's joint names, then just half the interest generated would be considered.
(SO add what you think you would earn on Interest which current Bank of England rates would generate interest of approx. 1.5% - so £150 a year in total (there are tax free savers such as ISAs or you may use this money towards a purchase of property in the UK - so the amount of interest even at £150 - £200 is negligible so I would not worry too much about this)

Thanks

Sam

Sam, Accountant
Category: Tax
Satisfied Customers: 13712
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Sam and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Hi Sam,


 


Many thanks for your reply. To fulfill the 'financial requirement' part of the spouse visa, I plan to invest my savings in my/partner/joint names in property abroad (spouse's country of origin) for six months, then sale it after six months and get spouse to apply for settlement visa with all the paperwork to show for it.


 


For tax purposes, would you recommend that I invest in my name/partner's name/joint names or it doesn't matter? If I made a profit of GBP 30k, would that be covered by CGT allowances for both of us or would I have to pay CGT on it? If so, how much?


 


Many thanks

Expert:  Sam replied 2 years ago.
Hi Mohammad

Thanks for your further question, as this is a new topic, as per Just Answers remit, you will need to list this as a new question.

If you would prefer me to answer then just address the opening sentence to Sam Tax, and the other experts will know to allow mw to answer this for you.

Thanks

Sam
Customer: replied 2 years ago.

Hi Sam,


 


ok, I'll do that.


 


Thanks

Expert:  Sam replied 2 years ago.
You are very welcome


Thanks

Sam

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions