Overseas Workday Relief - Exchange the Money

Exchange the money from GBP to EUR without bringing back the money to a UK domiciled account?

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Hello,

I am really confused about this one. When we are getting back the tax money under the Overseas Workday Relief, it is transferred to a non-domiciled account (e.g Expat account) in GBP.

To exchange this money to EUR for instance, which is the country of residency, it first has to go through a GBP account which might be domiciled in the UK which will then transfer it into Euro:

- Doing a transfer through Transferwise or Revolut or any other FX platform

Would that step be a problem? The alternative would be to use the bank which received it but they charge a horrendous 4% fee.

 

Thanks!

Replies (8)

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By Giopat
31st May 2022 15:10

Did you get any clarity on this? I stumbled upon your post looking for the same answer and cannot find anything useful.. thanks!

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By Giopat
31st May 2022 15:10

Did you get any clarity on this? I stumbled upon your post looking for the same answer and cannot find anything useful.. thanks!

Thanks (0)
Replying to Giopat:
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By Hugo Fair
31st May 2022 15:48

Reasons for no responses in 3 years?

1. OP is poorly worded, so neither scenario nor question are clear;
2. Inter-bank transfers & commissions are not accounting questions.

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Replying to Hugo Fair:
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By Giopat
31st May 2022 16:44

The topic reads very clear to me actually.

Question is as follows:
- in order to benefit from Overseas Workday Relief you must NOT remit the funds linked to overseas work in UK
- if you want to transfer those funds abroad in a different currency (e.g. EUR) you have two options: 1) you just transfer them to a EUR bank that will apply a very high commission for exchanging or 2) you have them transit from platforms such as Revolut that will apply a more competitive fee, or none
- Revolut is based in Lithuania, so a transfer to Lithuania should not count as remitting money to UK…. BUT.. and here comes the question
- To exchange the money from GBP to EUR Revolut will likely use a GBP correspondent banking account in UK first.

So question is: is a transfer to Lithuania (the example) in GBP equal to remitting money in UK if such a Lithuanian bank useS a GBP corresponding account in UK?

Very subtle you see, because you would assume when you send money somewhere non-UK that those money are not remitted

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Replying to Giopat:
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By Leywood
31st May 2022 16:57

As mud.
So what makes it an Accounting question?

Its still very clear no-one has answered since it was asked.

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Replying to Leywood:
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By Giopat
31st May 2022 17:24

It’s a difficult question. You wouldn’t expect many people to know the answer. Hopefully someone does!

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Replying to Giopat:
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By Hugo Fair
31st May 2022 17:37

You've described the scenario and question much more clearly than did OP ... but the issue remains that it's neither a difficult question nor a simple one - just the wrong audience of whom to be asking it.

One of the most basic rules for the receiving account to be deemed a qualifying account for the scheme is that it "must be a checking or deposit account".
However I've no idea (and as I said it isn't an accounting question) as to whether, for instance, Revolut consider their card account to be either of those types of account - and more importantly what HMRC's opinion would be on the matter.

Good luck with the research ... but that means you need to ask the right people!
[Alternatively you could ask one of the expensive experts - as per https://www.pwc.co.uk/assets/pdf/overseas-workday-relief-english-2014.pdf ]

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Replying to Giopat:
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By Leywood
31st May 2022 17:45

I dont think its a difficult question.

But you didnt answer mine as to why you think its an Accounting question? So just to clarify, its not.

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