Receive money from abroad in the United Kingdom | Receive money from overseas (2024)

FAQs

Receive money from abroad in the United Kingdom | Receive money from overseas? ›

There are a few different options available for receiving and sending international payments here in the UK. There's your UK bank (denominated in GBP), a foreign currency account held with a bank or a multi-currency account with a specialist money transfer provider like Wise.

There are a few different options available for receiving and sending international payments here in the UK. There's your UK bank (denominated in GBP), a foreign currency account held with a bank or a multi-currency account with a specialist money transfer provider like Wise.

If you have family, friends or a spouse abroad, you may, at some point, receive money from them. Whether it's for a birthday, wedding, tuition fees or to help with living expenses, an International Money Transfer (IMT) is a secure and easy way to send or receive money from overseas, in any chosen currency.

The short and simple answer is – yes, you can, but there's a catch. In this article, we'll explore how to do it, what the process entails, and why you may not want to do it, especially if you are running a business.

There isn't a law that limits the amount of money you can send or receive. However, financial institutions and money transfer providers often have daily transaction limits. This depends entirely on the establishment. Some might have a $3,000 limit per day, while others might have none at all.

Your foreign employment income* does not exceed £10,000 and it has been subject to tax in the country it arose (even if no tax was paid, for example because it was covered by a tax allowance in that country). Your foreign investment income does not exceed £100, and is subject to tax in the country it arose.

Get paid and go, with your Wise account.

Receive money from friends and family in the USA, convert it in your Wise account and spend in the UK. Wise converts at the mid-market rate with no hidden fees.

Money transfer

You can receive money from abroad via a bank transfer directly from the sender's bank account into yours. To receive a bank transfer from abroad, you'll need to provide the sender with your: Bank details.

Any international money transfer exceeding $10,000 USD must be reported to the US government on a Foreign Bank Account Report per the Bank Secrecy Act. Many people wonder, “Do large bank transfers take longer than online services?” Typically, the answer is yes.

Can I send money from a US bank account to a UK bank account? ›

To send money from the US to the UK, you can use a bank or a money transfer company. It normally takes 2-4 working days for your money to arrive. Money transfer companies are normally a cheaper and more efficient option. Some money transfer companies also offer guidance on exchange rates and timing.

If someone transfers money into my bank account, do I need to pay UK tax? Receiving funds in your bank account does not automatically incur a tax liability in the UK. Tax obligations depend on the nature and origin of the income rather than the manner of receipt.

Can I pay a foreign cheque into my UK bank account? Yes, most of the big high street banks will let you pay in a foreign cheque. There's usually a fee for doing so. If you need to access the money quickly, an online bank transfer is usually faster than trying to cash a cheque.

Recipients of foreign inheritances typically don't have a tax liability in the United States. And, if you're sending your own money from a foreign bank account to a domestic one, you won't have to pay taxes on the transfer.

However, there's no cap on the amount of money one can receive as an inward remittance. Tax Deduction at Source (TDS): While there's no tax on the amount received as remittance, any income generated from that amount (like interest from deposits) is taxable.

You do need to pay tax on wire transfers sent to a foreign bank account, if the transfer exceeds a certain sum. Any amount over $16,000 sent to a foreign bank account is likely to be considered as a taxable gift by the IRS.

Your bank account: Sending money to the US using your UK bank account is easy and convenient, as well as safe. You'll normally be able to complete the transaction online. However, using your bank will usually mean paying a fee, and also a poor exchange rate.