UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
I am working with Lloyds bank in London about opening a sizable account that will be used as a funding source for investments in various countries, including the UK and US. What are the UK tax requirements regarding an initial deposit, as well as after the account is open, earning interest?
I am a US citizen and resident
Thanks.You don't need to inform the UK tax authorities about a deposit of funds into a UK bank account unless you are asked directly. The banks have money laundering procedures to follow so you should make sure that the bank you use is aware that you will be depositing a large sum before it happens to avoid delays in accessing it. I'm not an expert in anti money laundering procedures so you should discuss that with the bank.Interest earned on accounts in the UK will have 20% tax deducted at source. As a non-UK resident, you can apply for exemption from this deduction by completing a Form R105 for each UK bank you have dealings with though not all banks will accept the form. If Lloyds doesn't accept the R105, then you would need to make a tax repayment claim at the end of the tax year which runs from 6 April to 5 April using a form R40.I hope this helps but let me know if you have any further questions.
That is very helpful.You do not know of any advance deposit needed for purposes of a potential Escrow type arrangement for potential tax payments?
Related question-do you do research on legitimacy of financial institutions?
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