Author, Mike Smith
Last Updated on August 7th, 2024
Need to send money from your account in the UK to a recipient abroad? If so, whilst the process can be very simple and quick to carry out, there are several important factors to take into consideration.
Within this article, we will look at the most important points to consider when making an international transfer from the UK.
We will cover subjects such as how much you can send, tax implications, and of course, how to make the transfer smooth, seamless, and most importantly, safe.
UK Limits for Sending Money Abroad
There are no legal limits on how much money you send abroad from the UK using an international bank transfer. However, your transfer may be monitored by both HM Revenue & Customs (HMRC) and the Financial Conduct Authority (FCA) for compliance reasons, although this rarely occurs.
As a heads up, your bank or money transfer provider will collect some details about both the sender and the recipient of international payments.
This is a standard process and nothing to be concerned about.
In my experience, the kind of payments that get extra attention are related to high-risk customer types, such as internet gaming or adult entertainment, or high-risk jurisdictions (Russia, China etc).
As long as you are not doing anything illegal and are complying with all regulations, you can easily transfer money abroad.
It’s worth noting that many banks have their own internal rules and daily limits when it comes to making large international transfers from the UK to an international recipient.
As an example, below are the international money transfer daily limits which are set by the UK’s biggest banks.
As a general rule, UK high street banks charge a flat fee of between around £10 and £25 per international money transfer plus they will also make money off the exchange rate they offer. For sums over £1,000, the exchange rate is usually the bigger charge.
Using your bank might seem convenient, but it is usually a more expensive way to transfer money internationally.
A money transfer company such as Key Currency is a much cheaper way to make an international bank transfer, as the exchange rates tend to be better and the fees are considerably lower than using your bank.
Are there any Tax Implications to Sending Money Abroad from the UK?
People choose to transfer money overseas due to many reasons, such as paying or receiving wages, transferring funds to a new bank account abroad or purchasing property in another country.
There is no tax imposed on international payments from the UK. Therefore, if you are sending funds from the UK to a recipient in another country, you should not be liable for any taxes on this transfer.
In simple terms, tax is charged at the time you earn or receive the money. Sending the money somewhere else is not a trigger for taxation.
Because tax is a complex subject, we would strongly advise you get some expert advice for peace of mind.
If your money transfer is for business purposes, it’s always a good idea to speak with your tax advisor who will be able to clarify that your transfer complies with any specific tax laws in the country of the recipient and of course in the UK.
Due to the laws governing international money transfers vary in different countries, you might be asked for documents related to your transfer, to satisfy local requirements. It can be a pain but it is best to comply.
For example, some transfers might involve proving your identity, or the source of the funds for tax clarification.
Guidance on Choosing the Best Transfer Method for You
There are three main ways to send money abroad: banks, currency brokers, and online apps.
- Banks are convenient and familiar but will charge high fees and exchange rates.
- Currency Brokers offer lower fees (sometimes none) and better exchange rates but require registration.
- Online apps offer quicker transfer times but will charge fees and have daily limits.
When choosing a money transfer service, it is important to consider costs, transfer times and convenience of the service.
Currency brokers tend to be the most popular and cost-efficient option for people looking to transfer a large amount of money overseas.
Many people simply aren’t comfortable sending a large amount of their money using an app or online system.
What’s more, you may not be overly familiar with foreign exchange and will benefit from some help and guidance on when to exchange your money and making sure the international payment details are right.
As currency brokers can offer personal assistance, they tend to suit people sending large sums internationally who would prefer to speak to someone in person.
This includes helping you with the payment set-up, communication through the entire process and even guidance on exchange rates.
How Safe is it to Send Money Abroad?
When you are sending your personal funds from the UK to a foreign recipient, it is of course essential that you investigate all options and ensure that your transaction is being managed safely and professionally.
There can be risks associated with sending money online, and finding the safest way to send money internationally remains an important concern for many users.
No matter which way you send money abroad, the most important tip is to ALWAYS use an FCA regulated business.
Unregulated companies are not required to adhere to the same stringent rules and regulations that are put in place to protect customers.
A company, such as Key Currency that is Authorised and Regulated by the Financial Conduct Authority must segregate customer funds.
Simply put, this means that a regulated company must use a separate and safeguarded bank account for client transactions.
You can check if a company is FCA Regulated by searching for their name in the Financial Services Register.
At Key Currency, all transfers are conducted through safeguarded client accounts. We have gained a 5-star “Excellent” customer rating on Trustpilot – which is the highest possible rating.
If you need support sending money abroad and want a free quote, contact our team of experts today and let us guide you through the simple process.
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