Sorry to bother people over Easter, but we are in a real pickle.
Situation: user of the remittance basis, wants to leave less than 2000 overseas for 2014-2015. To his end, he withdraw money today (Sunday the 5th of April) from a UK ATM. However, today! the foreign bank has already listed this transaction, but two days in the future, on April 7th! Now that is in a new tax year, which would mean having more than 2000 overseas, and losing personal allowances etc.
Now I realise this would all have been avoided if he had thought of bank delays over Easter in advance. But:
in your opinion - as I cannot find any HMRC guidance on this - what counts:
the date of withdrawal at the ATM (5th April) or:
listing of the transaction on the foreign bank account (to be clear, both the transaction date and the " booked" date will lie in the future, as the Bank is putting even the transaction date two days in the future, as seen today from an up to date bank statement).
If you think the ATM date, would a receipt of the ATM be enough proof against the foreign bank statement, in case of an enquiry for example?
Thanks to all, and happy Easter.
Replies (9)
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What's done is done. Look at it when you are back in the office on Tuesday.
Not familiar with this subject so don't understand the specific point having read this:
https://www.gov.uk/tax-foreign-income/non-domiciled-residents
Not qualified
In this area but it strikes me that if there cash was physically withdrawn and with the taxpayer on uk soil at the end of the year with that cash in hand there is a very difficult counter argument to be made.
Struggling
To see where you are coming from on this. I am no expert either but having had a quick read, I can't see how the timing of the ATM withdrawal would impact anything like personal allowance.
Errrr.... it'll determine
To see where you are coming from on this. I am no expert either but having had a quick read, I can't see how the timing of the ATM withdrawal would impact anything like personal allowance.
Errrr.... it'll determine whether the remittance basis is automatic (unremitted amounts in 2014/15 <£2,000) or whether it'll have to be claimed (of course, it doesn't). If the latter - no personal allowance.
Still don't see it
To see where you are coming from on this. I am no expert either but having had a quick read, I can't see how the timing of the ATM withdrawal would impact anything like personal allowance.Errrr.... it'll determine whether the remittance basis is automatic (unremitted amounts in 2014/15 <£2,000) or whether it'll have to be claimed (of course, it doesn't). If the latter - no personal allowance.
Are you sure about that..?
I agree the remittance date is the date of the cash withdrawal. It shouldn't be too hard to get the bank to confirm the withdrawal date.
Screen shot
Did you take a screen shot of the statement you viewed on 5th April.
That would be dated and prove the transaction must have happened already as only cheques take time to clear