It only applies to persons who:

• are entering the UK from a non EU country, or


• are traveling from the UK to a non EU country

and are carrying "cash" of 10,000 Euros, about £6,500, or more (or the equivalent in other currencies).

"Cash" includes not only currency notes and coins but also cheques of any kind (including travellers' cheques) and banker's drafts.

For this purpose the Isle of Man and the Channel Islands are non EU countries and so the declaration is required from persons travelling there from the UK or entering the UK from there (whether by air or sea) with sufficient "cash".

Travellers are required to declare the "cash" to HM Revenue & Customs (HMRC) at the place of their departure from, or arrival in, the UK.

Forms
Forms on which to make the declaration are available at ports and airports and are also downloadable from the HMRC internet site. The forms require information about the amount of money, its owner, its origin, its intended use and the intended recipient as well as details of the traveler’s name, address, nationality, passport number and occupation and the journey being made.

The intention is that travellers should simply drop their completed form into a box before boarding their boat or plane, retaining a carbon copy which they should produce if challenged.

Travellers could face a penalty of up to £5,000 if they fail to comply with the obligation to declare, or provide incorrect or incomplete information.

Under existing law "cash" of more than £1,000 may be seized anywhere in the UK (including at ports and airports) if a customs or police officer has reasonable grounds to suspect that it is either the proceeds of, or is intended for use in, unlawful conduct.

Tax evasion
This "cash" may then be forfeit to the Crown if no acceptable explanation for it can be provided. It is expected that HMRC will use information from "cash" declarations in their efforts to counter tax evasion and other crime.

There will still be no declaration required for people traveling between the UK and other EU countries. The countries of the EU are Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, (including the Canary Islands), Sweden, and the United Kingdom (not including the Isle of Man and the Channel Islands).

Qdos Consulting

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Susie Hughes
The Editor © Hardhatter 2007