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 transferred back to your own account in China? According to Article 8 of the current "Implementation Details for the Statistical Declaration of International Balance of Payments through Banks," the reporting is divided into bank submission, individual filling, and exemption from declaration under the limit. 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 by itself determine tax residency status on both sides.

Basic information, first verify the payee.

The text beginning requires banks to submit "basic information." Regarding the remittance, first please have the domestic receiving bank confirm the currencies that the account can accept, and request the recipient's name spelling, account number, bank name, and required bank identification code. In the UK, a bank or a remittance institution with appropriate qualifications should 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 for parents, prepare family relationship and purpose statements. The list of documents 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: the British pound should be transferred into domestic foreign currency accounts and then converted, or received directly in RMB through supported channels. According to the price transparency explanation of FCA, when comparing prices, the exchange rate difference, remittance fees, and possible fees from intermediary banks and receiving banks should be checked at the same time.

The statement "the amount that can be remitted back annually is limited to 50,000 USD" 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 convenience quota for foreign exchange settlement and sale, and cannot be directly regarded as the upper limit for inflow. Chinese residents who meet the conditions for current account income may handle non-quota foreign exchange settlement by presenting their ID documents and materials proving the source of funds with transaction amounts. When banks receive foreign currency and convert it into RMB, they need to confirm the processing conditions separately.

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

Declaration information, may need to be filled after the funds are received.

The provisions require 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 the code is uncertain, please consult the receiving bank. For foreign-related income that requires individual declaration, according to Article Twelve of the detailed rules, it should be completed within 5 working days after the remitting bank pays out or the intermediary bank converts the currency. It can be handled 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 still awaits additional documents should be confirmed with the receiving bank.

免填有门槛，税表还得另算

Article 8's "exemption from declaration within 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 statistical category of resident status the recipient applies for 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 the individual's domestic account usually do not require additional income tax for the transfer. Gifts to family members should also be checked against inheritance tax rules.

钱留在本人国内账户后产生利息，若属于英国应税海外收入，应按HMRC境外收入指引办理Self Assessment（自行报税）。国内端则结合住所、居住情况及适用税收协定，核对税务身份。现行《中华人民共和国个人所得税法》第七条、第十三条规定，居民个人取得应申报的境外所得，应在取得所得的次年3月1日至6月30日申报，境外已缴所得税按限额抵免。准备境外收入及完税凭证，向主管税务机关办理；不能直接把汇款年份当成工资所属年度。

My judgment is that for large remittances, the recipient bank should first confirm whether the documents can support account entry and exchange, before making 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 article is for reference only. For specific issues, please consult a licensed attorney.

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

Dealing with a UK legal matter? JustiScript can help