Foreign national liability on a sale

[hoopstermichael@hotm]

I am a non uk national who is living outside the UK and has just sold a flat. What is my uk and/or US tax liability? If I re-invest in the UK or US are there tax incentives/breaks available

thanks

MFH

[expattax]

Hi MFH

Assuming you have not been a resident of the UK for the past 5 tax years, there is no UK cpaital gains tax to worry about.

You ask what is your US liabillty. I therefore asume you are either a US citizen/green card holder or resident. As such you are laible to US tax on your worldwide income and gains.

You need to convert the acquistion cost of the flat at the date of purchase to find your US dollar base cost. So your dollar gain can be completely different to your sterling gain.

If the flat has been let then you will also have to recapture the depreciation claimed against your rental income.

If the property is part of a "like kind exchange" it is possile to defer the gain into another property.

If you want further assistance please let me know.

Kind regards


Mark J Hooper
US Enrolled Agent
mark@expattax.org.uk