New Eu Law On Taking Money Out Of The Eu.

Saw this in todays Telegraph. Apologies if this story has been posted before.

A new EU law that makes it an offence to take more than 10,000 euros (£6,760) out of the country without telling the tax authorities could trip up owners of homes overseas and pensioners taking the holiday of a lifetime.

The 10,000 euro limit applies to the equivalent in any currency and covers cash and any kind of cheques

As from yesterday, anyone seeking to leave the EU with such a sum must fill out a declaration form at the airport detailing the "origin and intended use of cash".

Failure to comply could result in a £5,000 fine.

The 10,000 euro limit applies to the equivalent in any currency and covers any kind of cheques - including travellers' cheques - and bankers' drafts as well as cash being taken out of or into the EU.

Accountants likened the law to a stealthy re-introduction of exchange controls which Margaret Thatcher's administration abolished in 1979.

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They said it was intended to deter last-ditch evasion tactics before the British tax amnesty which ends next Friday, June 22.

HM Revenue & Customs (HMRC) denied that the new legal requirement for some travellers to fill in more forms would add to queues at airports and said the change had been properly publicised.

But a straw poll by The Daily Telegraph yesterday found a national airline spokesman, a senior private banker - whose clients are mostly millionaires - and accountants who said they knew nothing of the new law.

Angela Beech, of accountants Blick Rothenberg, said: "This seems to be coming in through the back door and is going to affect people with second homes outside the EU - for example, in America, Switzerland or Turkey.

"It will also affect pensioners who are taking large sums abroad to enjoy holidays that may last several months.

"Interestingly, the notice on HMRC's website also says they have the right to seize any sum exceeding £1,000 if they suspect it is the proceeds of crime.

"I was certainly not aware of that - it could catch you if you were coming out of the bank to do a deal with a builder."

A spokesman for HMRC said the £1,000 limit was introduced under the Proceeds of Crime Act five years ago.

"People who have nothing to hide have nothing to fear," he said. "We are going to have a light touch about the new requirement.

"We are not after people buying homes overseas, we are after money launderers."

Mike Warburton of accountants Grant Thornton said: "This new law is all about hot money. We have a tax amnesty which ends next week and some people with offshore accounts that will be affected by the EU Savings Directive are no doubt thinking that they might transfer to jurisdictions which are not affected; such as Dubai and Singapore.

"The Government is keen that they should not do so."