What a transfer really costs
Most of the cost is hidden in the exchange rate, not the fee. Compare the rate you’re offered with the mid-market rate you see on financial news sites. A gap of 2–3% is common at banks; specialist providers are often much closer.
For a house deposit or a year’s savings, that difference can be thousands.
Your options
| Option | Good for | Watch out for |
|---|---|---|
| Your US bank’s international wire | Simplicity | Wider exchange-rate margins and fees on both ends |
| Specialist transfer providers | Most transfers, including large ones | Check they’re authorized by the FCA in the UK |
| Currency brokers (for large sums) | Home deposits, fixing a rate in advance | Minimum amounts; get quotes from more than one |
| Multi-currency accounts | Holding dollars and pounds, small regular transfers | Limits and fees for large amounts |
Large transfers: be ready for questions
UK banks and providers must check where large sums come from. Have ready:
- statements showing where the money built up
- sale documents if it’s from selling a home or investments
- gift letters if family is helping you
For a house purchase, your solicitor will ask for the same.
Tax points
- Moving your own money from the US to the UK isn’t taxed in itself. What can be taxed is income and gains.
- Sell first or move first? If you sell investments to fund the move, the timing relative to when you become UK resident can affect UK tax on the gain. See when UK tax starts.
- Exchange-rate gains can be taxable in the US in some cases, such as repaying a UK mortgage.
Keep a US account
Keep a US checking account open for US bills, refunds and credit cards. Some US banks restrict accounts for customers living abroad, so ask before you move.
What to do next
Build your move plan to see money steps in order.
Free · about 2 minutesSee every step for your moveBuild your move planRelated guideWhat happens to my 401(k) and IRA when I move to the UK?Related guideHow do I build a UK credit history?
General information, not personal advice. Spotted something out of date? Tell us.