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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My question is regarding double taxation between the

Resolved Question:

My question is regarding double taxation between the Netherlands and the UK
Assistant: Thank you. Can you provide any more details to help us find you the right Expert?
Customer: I am a Dutch national who moved back to the Netherlands in March this year and am currently working in the Netherlands but spending Thursday till Sunday in the UK. I would like to transfer some of my Dutch savings to the UK to pay off my mortgage on my UK apartment but am not sure what the tax implications in the UK are.
Submitted: 11 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 11 months ago.

Thank you for your question.

If you are resident in the Netherlands for tax purposes and are paying tax in that country on your earnings and wish to transfer some savings into the UK account to pay off your mortgage here, transfer of capital would be out of the scope of UK income tax.

It is only the income arising in the UK that would be subject to UK income tax.

I presume you are not non resident in the UK for tax purposes.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Expert:  taxadvisor.uk replied 11 months ago.

If you spend 183 or more days in the UK in the tax year then you resident in the UK for tax purposes.

In that case your worldwide income would be chargeable to UK income tax.

Under DTA you would be able to claim foreign tax credit relief for tax suffered in the Netherlands.

More information on this can be found on RDR3 (basic statutory residence test - basic rule on page 8) here

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/458559/RDR3_govuk_hyperlink__updated_078500.pdf

I hope this is helpful. You are requested to reconsider your rating.

Many thanks

Customer: replied 11 months ago.
I am tax resident in both countries as I have sufficient ties in the UK. I understand the double tax treaty will ensure I can offset income tax already paid in the Netherlands but I am concerned regarding capital transferred from the Netherlands to the UK and how this will be taxed in the UK.
Expert:  taxadvisor.uk replied 11 months ago.

Thank you for your reply.

Transfer of capital (that is savings) would not be subject to UK tax as by definition savings are taxed income in the first place.

You don't report transfer of capital on your tax return.

You should however alert your bank in the UK to comply with money laundering regulations.

I hope this is helpful and answers your question.

Your reconsideration of the rating would be greatly appreciated.

many thanks

taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 11 months ago.

I thank you for accepting my answer.

Best wishes

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