Does ILR need to be declared when transferring money from the UK back to China?

Does the salary taxed in the UK need to be declared when it is remitted to your own account in China? According to Article 8 of the current "Implementation Details for International Balance of Payments Statistical Declaration Business through Banks," the bank's reporting, individual filling, and exemption from declaration under the limit are distinguished. By separating these three parts, it will be clear at which step the procedures should be handled.

Holding a UK visa or ILR does not in itself determine tax residency status on both sides.

Basic information, first verify the payee.

The text at the beginning requires banks to report "basic information." When it comes to remittances, first please confirm with the domestic receiving bank which currencies the account can accept, and obtain the recipient's name spelling, account number, bank name, and required bank identification code. In the UK, use a bank or a remittance institution with appropriate qualifications, and provide identity proof, address, and source of funds as required. For salary savings, prepare pay slips, P60 annual tax forms, and corresponding deposit records; for living expenses given to parents, prepare family relationship documents and usage explanations. The list of materials is confirmed by the handling institution, and the P60 cannot alone prove the full source of the current balance.

The payment method must be determined before payment: GBP will be transferred to domestic foreign currency accounts and then converted, or received in RMB directly through supported channels. According to the FCA price transparency statement, price comparisons should simultaneously check exchange rate differences, remittance fees, and possible fees from intermediary banks and receiving banks.

The statement that "only 50,000 USD can be remitted back each year" is too general. The 50,000 USD stipulated in Articles 54 to 56 of the "Guidance on Current Account Foreign Exchange Business (2020 Edition)" refers to the annual convenient foreign exchange settlement quota, and cannot be directly regarded as the upper limit for inflow. Legitimate current account income of domestic individuals can be settled without occupying the quota by presenting ID documents and materials proving the source of funds with transaction amounts. Banks need to separately confirm the conditions for receiving foreign currency and converting it into RMB.

There is no unified number of days for arrival applicable to all channels. Confirm the expected arrival date and supplementary document arrangements before payment; if it exceeds the expected date, use the remittance number to track with the remitting party, and also ask the receiving bank to check whether it is pending processing.

Application information, may need to be filled after the arrival of funds

The text requires individuals to fill in the "declaration information" as specified, including the permanent country of the other party, transaction code, and remarks. When transferring funds between personal accounts or sending maintenance fees to parents, the information should be filled according to the actual relationship and nature of the funds. If unsure about the code, please consult the receiving bank. For foreign-related income that requires individual declaration, according to Article 12 of the detailed rules, it should be completed within 5 working days after the paying bank pays out or the converting bank converts the currency. This can be done through electronic certificates provided by the bank or at the counter. Upon receiving the declaration notice, verify the amount, currency, and deadline, and keep the receipt. Also, retain the payment voucher.

The "sent" status on the UK side only indicates the processing status on that side; whether the domestic account has been credited and whether it is still awaiting additional documents should be confirmed with the receiving bank.

No need to fill in the form, but tax statements still need to be calculated separately.

Article 8's "exemption from declaration under the limit" applies to resident individuals' foreign-related payments and receipts with a single equivalent value of up to 10,000 USD. Details in "no filling required": the declaration information in the documents is exempted, but banks still report basic information such as name, identification, currency, and amount. Non-resident individuals are reported by the bank according to regulations. Which category of statistical resident status the payee applies should be confirmed with the bank, and it cannot directly apply the UK residency status.

According to HMRC's public response regarding the transfer of principal to overseas accounts, salary savings that have been legally taxed and transferred to your domestic account usually do not require additional income tax for the transfer. Gifts to family members should also be checked against inheritance tax rules.

After the money is left in the individual's domestic account, it generates interest. If it belongs to taxable overseas income in the UK, it should be handled according to HMRC's guidance on overseas income for Self Assessment (self-assessment). On the domestic side, the tax identity will be verified by combining the residence, living situation, and applicable tax treaties. According to Article 7 and Article 13 of the current "Individual Income Tax Law of the People's Republic of China," residents who obtain overseas income that needs to be declared should file the declaration between March 1st and June 30th of the following year. The overseas income tax already paid can be offset within the limit. Prepare the overseas income and tax payment documents, and handle it with the competent tax authority; do not directly take the remittance year as the salary period.

My judgment is that for large remittances, the recipient bank should first confirm whether the documents can support account entry and exchange, and then make the payment. When family members are waiting for the money, it is more secure to clarify the recipient's conditions in advance, rather than chasing for additional documents after the payment.

This document is for reference only. For specific issues, please consult a licensed attorney.

[Data Source] State Administration of Foreign Exchange: Hifu [2022] No. 22, Hifu [2020] No. 14; HMRC: Public Response on Transfer of Principal to Overseas Accounts, Guidance on Overseas Income and Gifts; State Taxation Administration: Current "Individual Income Tax Law of the People's Republic of China" Article 7, Article 13.

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