June 2007

New Cash Declaration Rules

HMRC have announced new rules applying to people coming to or leaving the UK. From 15 June 2007, people travelling to or from a country outside the European Union (EU) will need to declare any sums of cash of 10,000 Euros or more (or the equivalent in another currency) to HMRC. There is no requirement to declare cash if travel is to or from another EU country.

This change is part of the EU’s efforts to prevent money laundering and HMRC have issued a leaflet explaining the new rules. The declaration must be made on forms which will be available at ports and airports.

‘Cash’ covers currency notes and coins, bankers’ drafts and cheques of any kind, including travellers’ cheques. Penalties can be charged for failing to declare the money or providing incomplete or incorrect information and, in addition, HMRC can seize cash of £1,000 or more if they have reasonable grounds to suspect it is the proceeds of, or is intended for use in, unlawful conduct. There is a right of appeal against seizure and any seized cash cannot be kept for more than 48 hours without a court order.

To read the HMRC guidance and press release, please use the links below.

Internet links:

Press release
HMRC leaflet