International Transfers – Your Questions Answered

| October 4, 2013 | 0 Comments

international transferModern technology and financial infrastructure means transferring money overseas can be a quick and easy procedure, but it is understandable that some people could find the process daunting, particularly if it is part of a big life change such as moving abroad.

One of the best ways to make yourself feel as comfortable and informed as possible is by asking lots of questions. This approach could improve your awareness of a range of issues, such as exchange rates and taxes.

What are the costs involved?

The main costs to take into account when making an international transfer are the provider’s fees and the exchange rate.

When planning your transaction and assessing different providers, it is important to be vigilant and thorough in your checks, as some companies enforce lots of small charges that could add up to a big total.

It could also be beneficial to monitor exchange rates, as even a minor fluctuation in the value of the currencies you are dealing in could have a significant impact on your finances, particularly if you are transferring large amounts.

One option that could prove financially advantageous is conducting your transaction through a dedicated overseas transfer service. This could offer bank-beating exchange rates and other bonuses including no commission charges.

What about taxes?

Taxation is an issue you may have to consider if you are sending money abroad as part of a plan to retire in a foreign country, or to help fund a significant investment such as a house purchase.

Anyone retiring abroad is expected to inform HM Revenue and Customs so the agency can determine your tax liability in the UK, whether you need to fill in a self-assessment tax return and if you are entitled to a tax refund.

If you are making an international money transfer to facilitate an investment, you should bear in mind that any returns on your investment could be subject to taxation in the UK and abroad.

Should I get professional advice?

If you feel unsure about any element of the currency transfer process, it is always sensible to get some advice from the experts. Moving large sums of money is a sensitive business, so you should ensure you feel entirely comfortable and informed before going ahead.

Another benefit of going with a specialist foreign exchange service is that you will be given a personal currency dealer who can guide you through the finer points of the process.

You can also get free help from institutions such as Citizen’s Advice and the Money Advice Service.

How far in advance should I plan my transfer?

For people who will be transferring relatively large sums of money, it is always a good idea to allow plenty of time to arrange the transaction. Rushing through the process is never advisable, as this could lead to important details being overlooked.

Make sure you give yourself time to complete necessary tasks such as setting up a personal or business account with a currency transfer service and deciding how much money you want to move.

In an emergency, it is possible to use international transfer specialists to make same-day payments to parts of the world such as Europe and the US.

Can I make regular payments?

One of the most useful aspects of modern overseas transfer services is the option to set up regular payments.

This facility can be used for all sorts of purposes, such as keeping up with mortgage payments on a foreign property, conducting pension transfers or supporting someone who is working abroad.

Some companies offer a choice of plans that allow you to fix a certain exchange rate for a set period of time or opt for variable rates.


Category: Finance

Leave a Reply