The UK Government plays a leading international role in addressing challenges related to remittances and financial inclusion, working through forums such as the Global Partnership for Financial Inclusion, and alongside organisations such as the Financial Action Task Force (FATF), to ensure these issues remain a focus of collective action.

At the same time, we remain committed to protecting the integrity of the UK financial system and ensuring that it is not exploited to facilitate illicit finance. The Money Laundering Regulations require regulated businesses to apply enhanced customer due diligence and enhanced ongoing transaction monitoring where there is a relationship or transaction involving a country subject to a FATF call for action, which includes Iran.

The Treasury does not collect or report data on the flow of remittances out of the UK and has not under previous governments.

The UK imposes taxes based on individual’s residence status. Individuals who are resident in the UK are taxable on their income and gains that arise worldwide. Remitting funds outside of the UK is not generally considered to be a chargeable event for individuals. It should also be noted that funds being remitted will often have already been subject to UK tax, such as income tax, if funded from earnings.

The Treasury does not collect or report data on the flow of remittances out of the UK and has not under previous governments. The UK imposes taxes based on individual’s residence status. Individuals who are resident in the UK are taxable on their income and gains that arise worldwide. Remitting funds outside of the UK is not generally considered to be a chargeable event for individuals. It should also be noted that funds being remitted will often have been subject to UK tax, such as income tax, if funded from earnings.

The Treasury does not collect or report data on the flow of remittances out of the UK and has not under previous governments. The UK imposes taxes based on individual’s residence status. Individuals who are resident in the UK are taxable on their income and gains that arise worldwide. Remitting funds outside of the UK is not generally considered to be a chargeable event for individuals. It should also be noted that funds being remitted will often have been subject to UK tax, such as income tax, if funded from earnings.

The numbers of non-domiciled taxpayers taxed on the remittance basis are published in Table 5 of the latest Non Domicile Taxpayer Statistics accessible for download here. The latest available year for numbers taxed on the remittance basis is tax year ending 2022.

The Temporary Repatriation facility began in 2025/26 so no data is held for the past year.

The numbers of non-domiciled taxpayers taxed on the remittance basis are published in Table 5 of the latest Non Domicile Taxpayer Statistics accessible for download here. The latest available year for numbers taxed on the remittance basis is tax year ending 2022.

The government recognises that improved cross-border payment services, including remittances, would have widespread benefits for citizens and economies worldwide. The government works with UK and international partners, including under the G20 Roadmap for Enhancing Cross-Border Payments, to seek to deliver faster, cheaper, more transparent and more inclusive cross-border payments and remittances.

Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:

https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-giftsand-overseas-travel

The Treasury does not collect or report data on the flow of remittances out of the UK. However, the World Bank publishes data annually on remittances through formal banking systems. Further information can be found on the World Bank’s website: https://www.worldbank.org/en/topic/migration/brief/remittances-knomad

There are no plans to change the policy on remittances to Ukraine. How remittances are sent to Ukraine is determined by individual UK banks.

We appreciate the hardships citizens face as a result of the ongoing conflict and note that increasing financial regulation from the National Bank of Ukraine has made it difficult to provide remittances to the people of Ukraine, including via UK banks.

The UK reaffirms its unwavering support to Ukraine for as long as it takes. We are facing a once in a generation moment for the collective security of Europe. Securing a lasting peace in Ukraine that safeguards its sovereignty for the long-term is essential if we are to deter Russia from further aggression in the future. Ukraine is paying the ultimate price in Russia’s illegal invasion – with the lives of its citizens – to defend the values and freedoms we hold dear.

The UK has committed £12.8bn in military, humanitarian and economic support to Ukraine since February 2022. The UK will continue to honour the PM’s commitment on 10 July 2024 which provides Ukraine with £3bn of military support per annum until 2030/31 or for as long as needed.

His Majesty’s Government has no legislation which blocks the process for sending remittances to Ukraine. How remittances are sent to Ukraine is determined by individual UK banks.

We appreciate the hardships citizens face as a result of the ongoing conflict and note that increasing financial regulation from the National Bank of Ukraine has made it difficult to provide remittances to the people of Ukraine, including via UK banks.

The UK continues to reaffirm its unwavering support to Ukraine. The UK has committed £12.8bn in military, humanitarian and economic support to Ukraine since February 2022. The UK will continue to honour the PM’s commitment on 10 July 2024 which provides Ukraine with £3bn of military support per annum until 2030/31 or for as long as needed.

The Foreign, Commonwealth and Development Office does not collect or report this data on the flow of family remittances out of the UK. The best source is the World Bank Group's remittance data which captures flows through formal banking systems and is published annually.

The Foreign, Commonwealth and Development Office (FCDO) co-convene, with Save the Children, a UK-based Remittances Working Group which works with key partners including remittance service providers, diaspora communities, NGOs, and other UK government departments to seek solutions that can drive down costs associated with sending and receiving remittances. The FCDO also supports a remittances project trialling new ways to reduce remittance transfer fees for individuals, working with East African diaspora members in the UK who are sending money back to Kenya.

Remittances from the United Kingdom to other countries are not taxable, as such HMRC does not hold this data.

Remittances are part of a complex global network of financial flows. With our partners FCDO is working to reduce the cost of remittances to deliver on the Sustainable Development Goals. For example in 2019, the UK government owned organisation FSD (Financial Sector Deepening) Africa made a catalytic investment in MFS Africa, Africa's largest mobile money hub, which reduced the average cost of remittances in 33 African countries from 6% in 2018 to 4.25% in 2021.

With respect to UK remittances that flow internationally, FCDO does not collect or report this data globally. The best proxy is the World Bank Group's remittance data which is published annually and available online https://www.worldbank.org/en/topic/migrationremittancesdiasporaissues/brief/migration-remittances-data and captures flows through formal banking systems.

The Office for National Statistics (ONS) do not publish estimates of remittance flows as part of their Balance of Payments publications. No other estimates of Balance of Payments components are made beyond the official statistics as provided by the ONS.

The World Bank estimates that remittance flows out of the UK were $10.7bn in 2015 and $9.3bn in 2020, with the estimate for 2021 yet to be released.

On 1^st January 2021, new legislation introduced by the Government took effect which changes the rules for the VAT treatment of goods sold by businesses based overseas. These changes were introduced to further address non-compliance and evasion of VAT.

HMRC has a long-standing programme of compliance activity with such businesses, which continues. Since 1^st January 2021, HMRC has investigated 4,488 businesses for non-compliance with VAT obligations that took place before then.