Remittances: Taxation
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of introducing a tax on remittance flows.
Answered by Lucy Rigby
The Treasury does not collect or report data on the flow of remittances out of the UK and has not under previous governments. The UK imposes taxes based on individual’s residence status. Individuals who are resident in the UK are taxable on their income and gains that arise worldwide. Remitting funds outside of the UK is not generally considered to be a chargeable event for individuals. It should also be noted that funds being remitted will often have been subject to UK tax, such as income tax, if funded from earnings.
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