International Wire Transfer Regulations Guide: Taxes, Limits & Requirements [2025]

Sending money overseas can be daunting – particularly if you're sending a high value payment. You'll need to make sure you pick a reputable provider and have all the information and documents needed to process the transfer securely, and you'll also have to make sure you're complying with any relevant legislation.

This guide walks through the basics of tax, limits and overseas payment rules for the UK. Plus we'll introduce some good ways to send your payment overseas safely, such as Wise and OFX.

Key points: International wire transfer regulations

• There's no fixed limit for reporting international wire transfers in the UK, but banks and payment providers must report suspicious activity under anti-money laundering laws

• Tax may apply depending on the source, purpose, and value of the funds especially if they relate to income or gains

• Payment providers must include specific information with each transfer to meet Funds Transfer Regulation requirements

• HMRC can impose penalties for failing to report taxable income or gains from overseas transfers

• Providers like Wise and OFX offer secure, simple ways to send payments abroad, with low fees and good exchange rates

Note: This guide is for information only – seek professional advice if you're unsure about tax legislation and how it impacts your payment in the UK or abroad.

What is the maximum amount of international wire transfer without taxes?

There's no specific limit on the amount of money you can transfer internationally without incurring taxes, but there may be some tax obligations depending on the source and nature of your funds:​

• Income Tax: If you're a UK resident, you are generally liable to pay UK Income Tax on your worldwide income, including earnings from abroad. This includes wages, foreign investment income, rental income from overseas property, and pensions held overseas. ​

• Capital Gains Tax: UK residents are also subject to Capital Gains Tax on worldwide gains.

• Inheritance Tax: If you receive a large gift or inheritance from abroad, you may need to consider Inheritance Tax implications. ​

It's important to note that the UK has double taxation agreements with many countries to prevent the same income from being taxed twice.

If you're unsure about your tax obligations when it comes to international transfers, it's always advisable to get the help of a tax professional or refer to HM Revenue & Customs (HMRC) guidelines to avoid penalties and negative legal consequences.

What happens if you wire transfer more than £10,000?

No fixed monetary thresholds exist in the UK that mandates automatic reporting of international wire transfers, meaning you can wire £10,000 or more abroad without it necessarily being flagged.

However, financial institutions are required to comply with anti-money laundering (AML) regulations, which include monitoring transactions for suspicious activity. If a transaction is deemed suspicious, regardless of the amount, it must be reported to the National Crime Agency (NCA) under the Proceeds of Crime Act 2002.​

These measures are in place to prevent financial crimes such as money laundering and terrorist financing.​

Additionally, under the Funds Transfer Regulation 2017, payment providers have to ensure that certain information accompanies wire transfers, including the payer's and payee's names, account numbers, and the payer's address, official personal document number, customer identification number, or date and place of birth.

What is the best way to send large amounts of money overseas?

There's no single best way to send a payment overseas. As long as you're using a licensed and regulated provider, your transfer should be processed safely – so the best option will normally simply come down to personal preference, and the fees and rates offered by different providers.

It's worth shopping around for different payment providers, considering the fees, exchange rates, transfer limits, delivery speeds and other factors. You'll find a range of providers offering different features and benefits, so you'll have to weigh up which is the best choice for your specific payment. Here are a few providers you may want to consider.

*The speed of transaction claims depends on individual circumstances and may not be available for all transactions. Details correct at time of research – 30th April 2025

Wise

Wise offers payments to 140+ countries, which you can arrange online and in the Wise app. Transfers are processed quickly and securely, and you'll be able to track your payment by logging into the Wise app.

Currency exchange uses the mid-market exchange rate with no fee added, and a small, transparent transfer fee which starts from 0.48%.

Wise offers high value payments, and has discounts on fees when you send 20,000 GBP or the equivalent in a single payment, or as a cumulative amount over the course of a month.

*Details correct at time of research – 30th April 2025

OFX

OFX is a specialist in international payments and currency conversion, which offers international transfers with no upfront transfer fee.

You can arrange your payment online or in the OFX app, but the service the brand is best known for is offered by OFX brokers, who you can talk to on the phone 24/7.

There's also no limit to the amount you can send with OFX – if your bank has a limit you can send in partial payments to fund your transfer in stages. OFX exchange rates include a small fee.

*Details correct at time of research – 30th April 2025

XE

XE Money Transfer supports payments from the UK to 130+ countries, with variable fees and exchange rates depending on where you're sending to.

You can arrange your payments online or in the XE app, for deposit to bank accounts globally.

The XE transfer limit from the UK is set at 350,000 GBP, with different limits if you use the service from another country.

*Details correct at time of research – 30th April 2025

Remitly

Remitly offers international payments with a variety of payout methods, on popular remittance routes.

You can have money sent to a bank account, mobile wallet, or for cash pickup, depending on your recipient's location.

Remitly has fairly low limits for payments from the UK, to protect customers and ensure account security.

*Details correct at time of research – 30th April 2025

Currencyfair

Currencyfair uses a flat rate for transfers, which is set at the equivalent of £2.50.

There's also a small fee added to the exchange rate used to convert your dollars to the currency needed for deposit.

You can create your payment online or in the Currencyfair app, to be securely deposited to your recipient's bank account.

*Details correct at time of research – 30th April 2025

Is there a limit on international wire transfers?

While there's no legal limit on the amount you can send overseas, providers do usually impose their own limits to help keep accounts secure. In some cases you may be able to increase your basic limit if you provide additional documents to support the payment, and to show the source of the funds.

Different providers can have very different payment limits – here's a summary of the services we've looked at in this guide:

*Details correct at time of research – 30th April 2025

Do banks have to report international wire transfers?

Banks and payment providers, like Wise, in the UK have to follow strict anti-money laundering rules.

While there's no set limit that triggers automatic reporting, any transaction that appears suspicious must be reported to the National Crime Agency (NCA) under the Proceeds of Crime Act 2002.

They're also required to include detailed sender and recipient information with every wire transfer, in line with the Money Laundering Regulations 2017 to help authorities trace funds and prevent financial crime.

Do I need to notify my bank of a large wire transfer?

The most convenient way to send a large wire transfer is online or in your mobile banking service. However, if your transfer is over the bank's specific electronic transfer limit for your account, you may need to visit a branch instead. This can cost more.

Bank's don't necessarily have a blanket limit on the amount you can send electronically – instead this may vary based on your account type.

Natwest and HSBC both have a £10,000 limit for transfers via mobile app, while Lloyds has a £100,000 limit and fee-free Euro payments online. You'll usually find you can have these limits increased if you arrange your payment in a branch.

If you don't have the time to visit your bank's branch to set up your payment, using a digital specialist provider with high transfer limits, like Wise or OFX might be more convenient. As digital first services, providers like these will allow you to submit any required paperwork electronically rather than needing you to go to an office in person.

How are international wire transfers regulated in the UK?

There are several rules in place to make sure international money transfers are safe, secure and not used for illegal activity. Payment providers have to follow the Money Laundering Regulations 2017, which say that key details, like the names and account numbers of both the sender and the recipient, must travel with the money to keep transfers traceable and transparent.

The Financial Conduct Authority (FCA) also checks that banks and money services are following the rules properly. If something looks suspicious, providers are required to report it under the Proceeds of Crime Act 2002, even if the amount being sent isn't particularly large.

Do you have to pay taxes on international wire transfers?

You don't usually pay tax just for moving money into or out of the UK, but tax might apply depending on what the payment is for and where the money came from.

If the money is income, such as wages, pensions, or rental earnings from overseas, UK residents normally need to declare it and may have to pay tax on it. The rules are different if you're classed as a non-UK resident for tax purposes.

You won't usually pay tax on cash gifts or transfers between family or friends, unless they're part of your estate when you pass away. In that case, inheritance tax might apply depending on the total value of your estate and when the gift was given.

If you're unsure how a transfer might be treated, particularly if you're sending a large amount, it's best to speak to a tax adviser or check with HMRC to stay on the safe side.

International wire transfer reporting requirements

There's no automatic requirement to report international wire transfers based solely on the amount sent or received. Only if the funds relate to income, gains, or assets that are taxable in the UK, would you maybe need to declare them to HM Revenue & Customs (HMRC).​

For instance, if you're a UK resident and receive foreign income or gains of £2,000 or more, you'll need to report this on a Self Assessment tax return. ​

Additionally, certain cross-border arrangements may need to be disclosed to HMRC under the Mandatory Disclosure Rules (MDR) if they involve specific hallmarks indicating potential tax avoidance. ​

If you're uncertain about your reporting obligations, consult a tax professional or contact HMRC directly to make sure that you're staying compliant.​

Information need to make a wire transfer overseas

When you send money overseas to be deposited in a bank account you'll need to have all the information needed to process the payment safely, which will usually include:

• The recipient's name, as shown on their account

• The recipient's bank account number

• The recipient's bank name and address

• The recipient's bank SWIFT/BIC code

Some countries also need some additional information, and your recipient will be able to tell you if there's more detail needed for the transfer.

Aside from this, you may be required to prove the source of the funds, particularly if you're sending a very large payment abroad. In this case you'll be asked to provide some extra documents to the bank or payment provider which is processing your transfer, to demonstrate that the funds have been legally obtained. The paperwork you need can vary a lot depending on where the money came from, but may include the following:

What are penalties for not following the rules?

Failing to report taxable foreign income or gains can lead to significant penalties. HMRC may impose fines of up to 200% of the tax owed on offshore income, depending on the circumstances. ​

If you miss the deadline for submitting your Self Assessment tax return, you'll face an initial £100 penalty. Additional daily penalties of £10 per day can accrue after three months, up to a maximum of £900, and further penalties apply if the return is over six months late. ​

Late payment of tax also incurs penalties: 5% of the unpaid tax at 30 days, six months, and 12 months after the due date. Interest is charged on late payments, with the current rate set at 8.5% from 6 April 2025. ​

To avoid these penalties, it's crucial to stay informed about your tax obligations and seek advice from professionals if you're ever unsure.​ If you believe a penalty has been wrongly applied, you can also appeal to HMRC within 30 days of the penalty notice. ​

Conclusion

You can send money overseas easily enough these days, but it's important to be aware of the rules and regulations which apply both in the UK and in the destination country. Generally there's not a limit to how much you can send, but individual banks and providers will usually impose limits on payments for security. You'll also often need to provide extra paperwork with high value international payments, to prove the source of the funds and to comply with law.

This guide covers some of the basics related to sending international payments – but it is still very important to get individual professional advice if you're not sure whether you need to report a payment, or pay taxes.

• Send money overseas with a bank or a regulated provider like Wise or OFX – fees and exchange rates vary so shopping around is important

• There's not a legal limit to the amount you can send overseas, but suspicious payments and activities are flagged to the NCA (National Crime Agency) via an SAR (Suspicious Activity Report)

• When you send a high value payment you'll often need to provide some additional documents to support your transfer, proving the money has come from legal sources

• Your bank might ask you to visit a branch to make a high value international payment while digital first providers like Wise and OFX can help you complete the necessary verification steps with your phone or laptop

International money transfer regulations in the US FAQs

Does HMRC monitor international wire transfers?

HMRC doesn't automatically monitor all international wire transfers. However, banks and payment providers are required to report any transfers they suspect are linked to money laundering or other financial crimes under the Proceeds of Crime Act 2002.

What law governs international wire transfers?

International wire transfers are covered by the Money Laundering Regulations 2017, which set out rules for verifying customers and including key information with each transfer. Banks and providers must also follow the Proceeds of Crime Act 2002, which requires them to report suspicious transactions that may involve criminal property.

What is the Funds Transfer Regulation (FTR) in the UK?

The Funds Transfer Regulation is implemented in the UK through the Money Laundering Regulations 2017. It requires banks and payment providers to include specific information about the sender and recipient, such as names, account numbers, and, in some cases, addresses or official identification numbers with every electronic transfer to help trace payments and prevent money laundering or terrorist financing.

Do wire transfers over £10,000 get reported to HMRC?

There's no automatic reporting requirement based solely on the transfer amount. However, banks and payment providers must report any transactions they suspect are linked to money laundering or other financial crimes, regardless of value. These reports are made to the National Crime Agency, not directly to HMRC.