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my situation is as follows. I have been living and earning in the UK for 3 years. I have savings and investments in my home country that I wish to liquidate and pull to the UK, as I am looking to purchase a property. The money I wish to pull is purely income from when I was resident in my home country, and gains on investments that I made using that income. I have paid the local taxes on it, but I wish to know if there are any UK specific tax implications on this money?

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You do not have to pay tax on money just because you move it from one country to another. Moving investments to the UK will not cause you to pay tax on them at that time. In some cases selling an asset may make you liable for tax on the sale. If you were not paying tax on foreign investments, moving them to the UK will cause you to pay tax on them.

While you were in the UK you should have been declaring your income in your home country to the UK tax office. You are exempt from this if you are non-domiciled (UK is not your permanent home) and your foreign income is below two thousand pounds.

If you have not been doing this consult a tax professional.

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  • Thanks! I didn’t realise that I need to declare income from investments made using money from before I moved to the UK.
    – Dexter
    Sep 25 at 19:31
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    You need to declare all your income. Consult a tax professional. They will probably recommend amending your previous tax returns. Sep 25 at 20:00
  • Depends on how successful your investments are. The most likely tax will be capital gains tax but see this gov.uk/tax-foreign-income page to get some idea. A professional would be a good idea, also if you're planning to purchase a property money laundering regulations might kick in, so banks or solicitors might want to know where the money came from.
    – PeterI
    Sep 26 at 1:03
  • Thankyou @PeterI. According to this gov.uk/tax-foreign-income/non-domiciled-residents, if my foreign income is below £2000 I don't need to do anything till such time I bring them into the UK. My foreign income in preceding 2 years was around £800 each, so I don't think I need to declare it?
    – Dexter
    Sep 26 at 8:19
  • That is my non-accountant understanding (but maybe HMRC has a different idea of what "income" means). Capital gains tax is a more likely issue if you have investments to sell so I would advise getting some professional advice from someone who specialises in this area, maybe try asking on some ex-pat forums, you probably should get hold of someone with experience of tax in both the UK and your home country.
    – PeterI
    Sep 26 at 14:37

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