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npvadvisor
npvadvisor,
Category: US Tax
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I have an escrow account in Mexico in USA dollars. I wish to

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I have an escrow account in Mexico in USA dollars. I wish to transfer the money back to the UK. Do I have to pay USA tax?
JA: Have you talked to a lawyer about this? In which country do you live? If different, which country is your legal question related to?
Customer: I live in the UK. I have been advised by an IFA that he believes I have to pay USA tax.
JA: What steps have you taken so far?
Customer: confirmed the credentials of the IFA which are European not USA
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: No thank you
npvadvisor

Hi. My name's Lane. … Welcome to JUSTANSWER.COM … Thanks so much for using us!

  • I hold a Law Degree, a BBA, an MBA (Finance Specialization), and CFP & CRPS designations as well
  • I've been providing tax, corporate law & accounting, financial, and Social Security advice to clients on three continents since 1986.

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(By the way, please understand that any phone consult offers come from the website automatically … not from me personally … These automated offers WILL stop.)

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Please bear with me JUST a moment, while I finish up with other customers, read your question, and write up your answer.

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Customer: replied 6 months ago.
Thank you. I am happy with a typed reply I’d that is easier
Customer: replied 6 months ago.
No typed reply please

YOur transfer ITSELF is not where the tax will be paid. Moving money from on physical point to another is not taxable.

However, when converting to another currency, your resident country, will tax you if this represents a gain.

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Again...

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"(By the way, please understand that any phone consult offers come from the website automatically … not from me personally … These automated offers WILL stop.)"

.

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On page CG78300

(www.hmrc.gov.uk/manuals/cgmanual/cg78300.htm) of the HMRC Capital Gains Manual it says:

"Currency other than sterling is a chargeable asset and its disposal can give rise to a chargeable gain or an allowable loss."

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I sincerely ***** ***** this has helped

If you need clarification on this, let me know.

(I’d be glad to come back and explain further.)

Otherwise, thanks so much for using us today!

Lane

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