To transfer money from the UK to the US, you send a SWIFT payment through your UK bank or a licensed transfer provider using the recipient’s SWIFT/BIC code, US account number, full legal name, and address. Most transfers arrive in one to three business days. The transaction itself is straightforward; what catches people out is the exchange rate markup buried in the price and, on the US side, the reporting forms that kick in above certain thresholds.
Details You Need Before You Start
The primary identifier for an international wire to the US is the recipient bank’s SWIFT code, also called a Business Identifier Code (BIC). It is 8 characters long, sometimes extended to 11 with a branch suffix.1Swift. Business Identifier Code (BIC) For an inbound payment from abroad, most UK banks treat the SWIFT/BIC as the main bank identifier on the form.
You also need the recipient’s full legal name exactly as it appears on the account, the US account number, and a physical address. Some UK banks additionally ask for the ABA routing number, a nine-digit code US banks use to identify themselves domestically.2American Bankers Association. ABA Routing Number The recipient can find it at the bottom of a check or in online banking. Ask for both codes; having them prevents the most common reason transfers stall.
On your side, your UK bank identifies your account with a six-digit Sort Code and an International Bank Account Number (IBAN) that starts with “GB”.3HSBC UK. IBAN and BIC Both appear on your statements and in your online banking portal. Check every character. A single wrong digit can send the money into a suspense account while the bank investigates, and most institutions charge a fee for rejected transfers.
Sending the Payment
Log into your bank’s online portal or app and go to international payments. Choose a SWIFT payment, not a SEPA payment (SEPA is for euro transfers within Europe).4Nationwide. International Payments – SWIFT and SEPA Enter the recipient’s SWIFT/BIC, account number, name, and address, then the amount in pounds or dollars. The system will display the converted amount at the offered exchange rate, plus fees, before you commit.
Most banks require two-factor authentication at this stage, either a one-time code by text or a card reader. After you authorize the payment, the bank runs internal compliance checks. For routine amounts this takes minutes; for large or unusual transfers, a business day or longer.
Once the transfer clears compliance, ask specifically for the SWIFT MT103 document. It is the standardized payment confirmation used across the SWIFT network and serves as your proof of payment. The MT103 includes a Unique End-to-End Transaction Reference (UETR), a 36-character tracking code any bank in the payment chain can use to locate the funds.5Swift. What Is a Unique End-to-End Transaction Reference (UETR) If the payment is delayed, that reference is what your bank needs to trace it.
What It Actually Costs
The advertised fee rarely tells the full story. Three separate costs can shrink what your recipient gets:
- Your UK bank’s upfront transaction fee. Nationwide, for example, charges £15 per SWIFT transfer.4Nationwide. International Payments – SWIFT and SEPA
- Intermediary bank fees. SWIFT transfers often pass through one or more correspondent banks, each of which may deduct its own processing fee. You typically won’t know the exact charge until the money lands.
- Exchange rate markup. Banks commonly add a margin of 1% to 3% on top of the mid-market rate. On a £50,000 transfer, a 2% markup costs roughly £1,000, far more than any visible fee.
When setting up the transfer, your bank will ask how fees should be split. The standard options are OUR (you pay all fees, including intermediary charges), SHA (shared: you pay your bank’s fee, the recipient absorbs any deductions further down the chain), and BEN (all fees taken from the transfer amount). SHA is the most common choice, but any intermediary deductions under SHA still reduce what your recipient receives.
Under Financial Conduct Authority rules, UK firms must show you the exchange rate, any markup above their reference rate, all fixed and variable fees, and the final amount the recipient will receive, all before you commit.6Financial Conduct Authority. Consumer Duty – International Payment Pricing Transparency If a provider isn’t showing that breakdown upfront, treat it as a warning.
Bank, Online Service, or Currency Broker
High-street banks are the default and use the SWIFT network to route payments to the US. The infrastructure is reliable, but banks typically mark up the exchange rate well above the mid-market rate, and that markup is often where most of the transfer’s true cost sits.
Online transfer services run digital platforms that bypass some of the intermediary banks in the chain. By holding balances in multiple countries, they can offer rates closer to mid-market and faster processing. In exchange, per-transaction limits may be lower and customer support is largely automated.
Currency brokers assign a dedicated account manager and focus on larger sums, where small exchange rate movements translate into meaningful differences in dollars received. Brokers can also arrange forward contracts, letting you lock in today’s rate for a transfer you plan to make later, typically up to two years in advance. That is useful if you are selling UK property and want a known dollar figure at completion.
Documentation Banks Ask For on Large Transfers
UK anti-money laundering rules require banks to verify identity before processing international payments, and to investigate where the money came from when a transaction stands out from your normal pattern. This obligation flows from the Proceeds of Crime Act 2002.7GOV.UK. Fact Sheet – Overview POCA Expect a compliance request for proof of the source of funds on a large sum.
Acceptable evidence depends on the situation:
- Property sale: a signed completion statement or contract of sale from your solicitor.
- Inheritance: a grant of probate or letter from the estate’s executor.
- Savings: bank statements showing consistent accumulation over time.
- Employment income: recent payslips or an employment contract.
Scan documents into clear PDF or JPEG files before you contact the bank. Compliance reviews can hold funds for weeks if paperwork is slow, and the bank has no obligation to release the transfer until it is satisfied.
What the US Recipient Has to Report
The transfer itself does not create a US tax bill. Receiving money from abroad is not taxable income. But depending on the amount and the reason for the payment, the US recipient may face reporting obligations with significant penalties for missing them.
Gifts and Inheritances Over $100,000
A US person who receives gifts or bequests from a foreign individual totaling more than $100,000 in a single tax year must report the amount on Form 3520.8Internal Revenue Service. Gifts From Foreign Person The form is due by April 15 of the following year, with extensions available, and is filed separately from the income tax return. The money is not taxed; this is purely an information filing. Missing it triggers a penalty of 5% of the unreported gift for each month late, capped at 25%.9Internal Revenue Service. International Information Reporting Penalties On a £200,000 inheritance, that can reach tens of thousands of dollars.
The threshold applies to the total received from a single foreign person, or related persons, during the year. Each individual gift above $5,000 must be separately identified on the form.10Internal Revenue Service. Instructions for Form 3520
FBAR and FATCA If You Also Hold a UK Account
If the US recipient is a US person who also keeps a bank account in the UK, two separate filings may apply based on the account’s value:
- FBAR (FinCEN Form 114). Required if the combined value of all foreign financial accounts exceeds $10,000 at any point in the calendar year. Filed electronically with FinCEN by April 15, with an automatic extension to October 15. The non-willful penalty is up to $16,536 per report; the willful penalty is the greater of $165,353 or 50% of the account balance.11Financial Crimes Enforcement Network. Report Foreign Bank and Financial Accounts
- Form 8938 (FATCA). Required if the total value of specified foreign financial assets exceeds $50,000 on the last day of the tax year or $75,000 at any point during the year, with thresholds doubled for joint filers. Filed with the tax return. The initial penalty for not filing is $10,000, plus $10,000 per month up to $50,000 if you ignore an IRS notice.12Internal Revenue Service. Do I Need to File Form 8938, Statement of Specified Foreign Financial Assets9Internal Revenue Service. International Information Reporting Penalties
The two overlap but are not identical, and many US persons with UK accounts need to file both. Neither creates tax liability on its own. Both are information returns; the penalties are not.
The Bank’s Own Report on Large Transfers
US banks file a Currency Transaction Report with FinCEN for transactions involving more than $10,000.13Financial Crimes Enforcement Network. Definition of Frequent – FinCEN The recipient does not file this; the bank handles it automatically. Do not try to split a large transfer into smaller amounts to slip under the threshold. That is structuring, and it is a federal crime regardless of whether the underlying money is legitimate.