Expat Finance
TL;DR
International money transfers from the UK can be made via high-street banks, specialist transfer services, or payment apps. Banks typically offer less competitive exchange rates and charge fixed transfer fees; specialist services generally offer better rates with lower or no fees for standard transfers. All firms handling UK money transfers must be authorised or registered with the FCA as payment institutions. Check the FCA Register before using any service.
Key facts (2026)
- Firms providing payment services including international money transfers in the UK must be authorised or registered by the FCA under the Payment Services Regulations 2017; check the FCA Register at register.fca.org.uk before using any transfer service.
- The FCA requires payment institutions to provide clear pre-transfer disclosure of the exchange rate, all fees, and the amount the recipient will receive in the destination currency before the transfer is authorised (Payment Services Regulations 2017, as retained in UK law).
- HMRC does not impose tax on the act of sending money abroad from the UK; however, if the transfer represents a taxable event (such as a gift, disposal of an asset, or foreign income remittance), tax obligations may arise separately (HMRC remittance basis guidance).
- The Financial Ombudsman Service can adjudicate complaints against FCA-authorised money transfer firms from eligible retail consumers; the FOS is free to use and its decisions are binding on firms up to £430,000 (FOS, 2025/26 limits).
- Anti-money laundering regulations require transfer providers to verify the identity of senders and recipients above certain thresholds and to report suspicious transactions to the National Crime Agency under the Proceeds of Crime Act 2002.
Banks versus specialist transfer services: the cost difference
High-street banks offer international money transfers to any IBAN-accessible account, but typically at exchange rates that include a margin of 2 to 4 percent above the mid-market (interbank) rate, plus fixed transfer fees of £10 to £25 per transaction. On a transfer of £10,000, a 3 percent exchange rate margin costs £300 - far more than any fixed fee. Specialist money transfer services - including Wise (formerly TransferWise), Revolut, WorldRemit, OFX and Currencies Direct - typically charge exchange rate margins of 0.4 to 1.5 percent and lower or zero fixed fees for standard amounts. The total cost difference between a bank and a specialist provider can be £200 to £300 on a £10,000 transfer. The mid-market rate is published in real time on Google Currency or XE.com and provides a benchmark for assessing how much margin is built into any quoted rate.
How to check FCA authorisation of a transfer provider
Before using any money transfer service, verify it is authorised or registered on the FCA Register at register.fca.org.uk. Search by firm name or registration number. The register shows whether the firm is fully authorised as an Authorised Payment Institution or registered as a Small Payment Institution, and what payment services it is permitted to provide. Authorised Payment Institutions are subject to more rigorous capital and conduct requirements than Registered Payment Institutions. Firms operating without FCA authorisation are breaking the law; using them provides no FCA or FOS protection if things go wrong. Firms regulated in the EEA may have operated in the UK under temporary permissions post-Brexit; their current UK authorisation status should be confirmed before use.
Exchange rate types: spot, forward and limit orders
A spot transfer executes at the current market rate at the time of the transaction. A forward contract locks in an exchange rate for a future transfer - useful if you know you will need to send money in three or six months and want to protect against adverse rate movements. A limit order instructs the provider to execute the transfer automatically if and when the market reaches a target rate you specify. Spot transfers are immediate; forward contracts and limit orders require the provider to offer these services and may require a minimum transfer amount. Specialist providers including Currencies Direct, Moneycorp and Smart Currency Exchange offer forward contracts and limit orders for retail customers; most consumer-facing apps like Wise and Revolut offer spot transfers only.
Transfer speeds and what affects them
International transfer speeds vary by destination country, currency corridor and the correspondent banking chain involved. SEPA credit transfers within the EU and EEA are typically same-day or next-business-day. Transfers to major markets such as the USA, Australia, Canada and Singapore are typically one to two business days. Transfers to emerging markets may take three to five business days and may involve correspondent bank fees deducted from the transfer amount (though many specialist providers absorb these). SWIFT transfers - the standard international bank-to-bank protocol - can be tracked with a SWIFT reference number. Factors that delay transfers include anti-money laundering checks, intermediary bank processing times, and local banking system hours at the destination.
Sending large amounts: compliance and tax considerations
Large transfers trigger enhanced due diligence under anti-money laundering regulations. Providers are required to verify the source of funds for large or unusual transactions and may request supporting documentation such as solicitor letters (for property proceeds), payslips (for salary transfers), or inheritance documentation. This is not unique to specialist providers - banks apply equivalent checks. Separately, if the money you are transferring represents income earned abroad, a gift, or the proceeds of an asset disposal, you may have UK tax reporting obligations depending on your tax residence status and the nature of the funds. The remittance basis of taxation - relevant to some non-UK domiciled individuals who report foreign income only when it is brought to the UK - has been reformed from April 2025 alongside the IHT changes; take advice if you are uncertain about the tax treatment of your specific transfer.
Protecting yourself from transfer fraud
Authorised push payment (APP) fraud - where victims are tricked into authorising transfers to fraudsters' accounts - is the most common form of money transfer fraud in the UK. The Payment Systems Regulator introduced mandatory reimbursement for APP fraud victims from October 2023, requiring banks and payment providers to reimburse most victims up to £85,000 per claim where the fraud meets the qualifying criteria. Always verify the recipient's account details independently - do not rely on account numbers or IBANs provided in an email, as these may have been changed by a fraudster. Use the account holder's name check (Confirmation of Payee or equivalent) before authorising any large transfer. The PSR's reimbursement rules do not apply to cryptocurrency transfers or transfers to accounts outside the UK Faster Payments system.
Frequently asked questions
Is there a limit on how much money I can transfer abroad from the UK?
There is no statutory limit on the amount you can transfer abroad as an individual, but providers must comply with anti-money laundering regulations, which require enhanced due diligence and source-of-funds documentation for large amounts. Banks typically have internal daily transfer limits (often £50,000 to £100,000 online) that can be increased by telephone instruction. Specialist providers handle large transfers regularly but may require additional compliance documentation. HMRC reporting requirements apply where relevant to the nature of the funds.
Can I get a refund if I make a mistake on a transfer?
Under the Payment Services Regulations 2017, if you provide incorrect payment details that result in a transfer to the wrong account, you should notify your provider immediately. The provider must make reasonable efforts to recover the funds. Recovery is not guaranteed - if the recipient refuses to return the funds, you may need to pursue legal action in the destination jurisdiction. Confirmation of Payee checks before authorising a transfer significantly reduce the risk of misdirected payments within UK Faster Payments.
Are cryptocurrency transfers treated the same as bank transfers?
No. Cryptocurrency transfers are not covered by the Payment Services Regulations 2017 or the PSR's APP fraud reimbursement scheme. Firms operating cryptocurrency exchange or transfer services in the UK must register with the FCA under the Money Laundering Regulations 2017, but they are not payment institutions and the consumer protections that apply to regulated money transfers do not apply. HMRC treats cryptocurrency as a capital asset; transfers abroad may have CGT implications depending on the circumstances.
What happens if a money transfer firm goes bust?
Client funds held by authorised payment institutions must be safeguarded under FCA rules - held separately from the firm's own money so they can be returned if the firm fails. This safeguarding requirement applies to funds in transit and funds held in electronic money accounts. FSCS protection does not extend to payment institution client funds in the same way it does to bank deposits; the safeguarding rules are the primary protection. Check that your chosen provider operates a full safeguarding model, not just a partial or unverified one.
Do I need to declare a large transfer to HMRC?
The act of transferring money internationally does not in itself trigger a reporting obligation to HMRC. However, if the funds represent taxable income (such as foreign employment income), capital gains (such as property sale proceeds), or a gift subject to IHT rules, the underlying transaction must be reported on your self-assessment return. If you are non-UK domiciled and using the remittance basis, the timing and nature of transfers to the UK is particularly important to document accurately for tax purposes.
How we verified this guide
All figures and rules in this guide were verified against primary government and regulator sources during May 2026.
Primary sources
- FCA Register - Authorised payment institutions
- FCA - Sending money abroad consumer guidance
- Financial Ombudsman Service - Payment complaints
- MoneyHelper - Sending money abroad
- Citizens Advice - Banking and payment services
Last reviewed: May 2026.