If you are transferring large amounts of money into the UK, it is important to know what the potential tax implications could be. For most international money transfers, there is unlikely to be any requirement to pay tax.
The first thing to note is that if you are a UK resident and you are transferring existing funds/assets to yourself, there are typically no tax implications.
But when it comes to other transfers from overseas, the taxation regulations for the UK are determined by the following:
Currently, there are no legal limits on the amount of money you can transfer to the United Kingdom. However, if you’re bringing in £10,000 or more in physical cash you will need to declare it. Also, there are no limits on payments made via bank transfer. Despite this, some major UK banks set daily online limits of £50,000 to £100,000.
Money specialists such as Xe Money Transfers and TorFX allow transfers of any amount for select customers, no matter how large.
One of the key factors on whether you’re required to pay tax on money sent from overseas is your residency status. All UK residents have to pay tax on foreign income.
Foreign income includes all forms of the following:
If you are unsure about your residency status, then you can use the Statutory Residence Test (SRT) to work out your residence status for a tax year. As a general rule, if you live in the UK for 183 days of the year, you will be considered a UK resident.
If you are not a UK resident for tax purposes, you generally don’t pay UK tax on your foreign income. However, you may still have to pay UK tax on certain income, such as UK employment income or rental income from UK property.
The old non-domicile rules ended on 6 April 2025. The current system is now primarily based on whether you are a UK resident, rather than whether you are domiciled in the UK.
Qualifying new UK residents who have been non-UK resident for at least 10 consecutive tax years may be able to claim relief under the new foreign income and gains (FIG) regime during their first four years of UK residence.
If funds transferred from abroad are a gift, it is not normally treated as taxable income for the recipient.
However, it is still a good idea to consult a UK tax adviser, especially if there are large sums of money being sent. If the received money earns interest, the gains could be taxable.
The UK offers flexible money transfer options. Depending on the transfer company you use, you can set up your transfer for cash pickup, a bank deposit, a deposit to a mobile wallet or an international money order delivery.
Cash pickups may be limited outside of major cities. Read our guide on transferring money to the UK for details on sending and receiving funds.
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