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By Joe Baker | Monday, April 24, 2023
There are no exchange controls in the UK for the pound sterling (GBP), and transferring money to the UK and sending money from the UK is very easy. Moreover, EU rules require free movement of capital throughout the bloc. The current uncertainty surrounding Brexit means that this could be subject to change over the next few years.
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OFX (previously UKForex in the UK), provides secure and speedy international money transfers to over 300,000 people in 55 currencies at better-than-bank rates
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There are no restrictions on the remittance of profits, dividends, interest, royalties, licensing, management, design, and technical and patent fees, whether by businesses or individuals. Nevertheless, the tax authorities may challenge the level of transfers if they suspect tax avoidance or evasion. Furthermore, banks monitor transactions for suspected money laundering, and the law requires them to have a Money-Laundering Reporting Officer.
They must adequately identify customers when they open accounts and in relation to any transaction exceeding £10,000. If the transaction is by an account holder, this is generally sufficient proof of identity. The reporting rules also apply to estate agents, casinos, insolvency practitioners, tax advisers, accountants, auditors, lawyers, company- and trust-formation agents, and anyone conducting a business dealing in goods (including auctioneers).
The UK is home to a large number of overseas money transfer providers, and you should find little difficulty in selling UK pounds to buy virtually any foreign currency, other than those with purchase restrictions or in territories linked to other activities such as terrorism.
The central bank, the Bank of England, is responsible for monetary policy. Regulatory authority and supervision is provided by both the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA), the two bodies having replaced the previous regulator, the Financial Services Authority, in 2013.
Overseen by the Bank of England, the PRA focuses on the financial health of deposit-taking and loan-making institutions, individually and collectively. The FCA ensures that the financial markets function efficiently and effectively while ensuring competition and protecting consumers. Money transfer providers in the UK are regulated by the FCA, and must also be registered with HM Revenue & Customs (HMRC).
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WorldRemit is an online service that lets people send money to friends and family living abroad, using a computer, smartphone or tablet.
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Azimo is an online only provider with a focus on mobile money transfers. They also work with the top global banks and payment providers to ensure the safe delivery of your money and payout globally.
Remitly is a leading remittance focused player headquartered in the USA. Recipients can receive money by bank deposit, cash pick up, mobile money, or home delivery
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The Western Union Company is a financial services and communications company based in the United States.
Opening a bank account for non-nationals in the UK is relatively easy. You will be required to provide proof of your employment/income, evidence of an address in the UK, and your passport. The largest high street banks in the UK all offer substantial coverage throughout the country, from which money can be sent overseas or into which overseas money transfers can be received.
Many banks allow holders of sterling accounts to open foreign currency accounts. The most common foreign currency accounts are held in US dollars and euros, but some banks may offer accounts in other major currencies such as Canadian, Australian, New Zealand, Singapore or Hong Kong dollars, or Japanese yen and even Chinese renminbi.
Any national of the European Economic Area (EEA) 27 out of the 28-member European Union (with the exception of Croatia), plus Iceland, Liechtenstein and Norway can move freely to the UK to work, invest or study. For nationals of every other country, the UK operates a five-tier points-based visa system. The current Brexit situation means that there is a lot of uncertainty about how this is going to work going forward. While current EU nationals living in the UK can apply for residency, the system is not very efficient and there are currently no cast-iron plans as to how visas and work permits will work if or when Brexit finally goes through.
Most would-be immigrants will require a Certificate of Sponsorship to obtain a visa, the exception being for “high-value migrants”, entrepreneurs and investors who fall into Tier 1. Tier 2 covers intra-company transfers of highly skilled workers for roles that cannot be filled by an EEA national. Tier 4 visas relate to studying, with applicants required to have a Confirmation of Acceptance for Studies from an accredited UK educational institution. Tier 5 visas cover various categories of temporary workers, including those in the religious, creative or sporting fields, as well as the Youth Mobility Scheme, which enables about 55,000 young people every year to work in the UK on working holidays. (Tier 3 was originally conceived for low-skilled workers, but no visas have been granted in this category).
In most cases, spouses and dependents are allowed to come to the UK with the main applicant. Spouses are usually allowed to work, though this does not apply to spouses of some student visa holders and Tier 5 visa holders. From 2016, only people earning £35,000 or more annually will be able to apply for permanent resident status.
While the process of transferring money internationally is straightforward, the UK has a complex tax system, so for instance, if you are transferring money from US to UK there are likely tax implications to understand. Expatriates, whether moving from or to the country, will need professional tax advice.
The UK tax year runs from 6 April to 5 April of the following year, whereas many other countries either run a calendar year or from the mid-point of the year. These differences in dates will impact your tax planning. The UK also has double tax treaties with many countries, but these do not cover every taxable item.
If you move overseas from the UK, you will still be able to receive your UK pension abroad, but you will not be eligible for annual increases in benefit. Your pension will therefore stay at the rate it was when you left the UK. There are also many opportunities for UK expats to set up different pension schemes overseas, such as QROPS, which are run outside of the UK. You can then send funds from your overseas pension to where you are residing as an expat.
The pound sterling (GBP) is made up of 100 pence or pennies (p). The Bank of England issues the majority of sterling banknotes, in values of 5, 10, 20 and 50. Banknotes issued by Scottish and Northern Irish banks, as well as sterling banknotes from the Crown dependencies of Jersey and Guernsey, and the Isle of Man, can be used as a means of payment in the UK, but are sometimes refused due to lack of familiarity. Scottish, Northern Irish and Jersey notes also come in denominations of 1 and 100. Coins come in denominations of 1p, 2p, 5p, 10p, 20p, 50p and £1 (special issue 25p and £5 coins also exist and are legal tender, but are extremely rare).
See our links below to our specific money transfer guides that are for moving from the UK as an expat, as a student or retiring, as well as trading with each of the countries below.
Money Transfer UK to Australia
Money Transfer UK to New Zealand
Money Transfer UK to South Africa
Money Transfer UK to Switzerland
Since its founding, the USD has remained the world’s most influential and stable currency, which is why we see countries outside the US adopting it as either a primary or secondary currency.
According to the Department of Commerce, the trade relationship between the US and the UK supports an estimated 665,000 individual jobs.
All of the money transfer companies and services listed above are fully safe to use. Each of the above are authorised and regulated by the relevant financial authorities in each jurisdiction and are licensed to provide transfer services.
The length of time it takes to fully complete a money transfer will depend entirely on the service used and what currency you want to transfer. Transfers sent using banks — such as bank to bank transfers — will typically be quite quick, often taking between 1–2 working days. For more precise estimates, you should always check the estimated time with the relevant provider. Debit card and credit card payments might also take less time.
To use FXCompared to make a money transfer from UK to USA, the first step is to use the above table to compare the rates from the various providers. To find the best provider to transfer GBP to USD, consider factors including price, speed and its overall rating. Once you have made a decision, simply click the green button to get taken through to the provider’s website. From there, you will be able to sign-up and register for an account. Once the verification process is complete, you can initiate the transfer.
The majority of transfers overseas will be made using a bank to bank transfer, although there are a number of other methods available. This includes cash, debit and credit card, as well as digital wallets. The methods available to you will depend on what provider you chose to make the transfer with.
Although the prices shown above are generally accurate with market rates in real time, there may be some slight differences when you finalise your order. Exchange rates will fluctuate over the course of the trading day based on real-time market data. As such, when you are looking to transfer money to UK from US, for example, there may sometimes be a delay in how they are reported. Price fluctuations may also be caused by the individual site in question, depending on what services they have available.
We welcome all suggestions for improvements. Send us an email at support@fxcompared.com.
All the providers listed are regulated by the relevant authority (e.g. the FCA in the UK, FinCEN in the US, ASIC in Australia) and have been vetted by FXcompared.
FXcompared.com is an fx money comparison site for international money transfer and to compare rates from currency brokers for sending money abroad. The website and the information provided is for informational purposes only and does not constitute an offer, solicitation or advice on any financial service or transaction. None of the information presented is intended to form the basis for any investment decision, and no specific recommendations are intended. FXC Group Ltd and FX Compared Ltd does not provide any guarantees of any data from third parties listed on this website. FX compared Ltd expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from (i) any error, omission or inaccuracy in any such information or (ii) any action resulting therefrom.