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Where Taxpayers and Advisers Meet

Selling property in the Isle of Man from a UK resident

ManxViking
Posts:3
Joined:Fri Jun 02, 2017 2:38 pm
Selling property in the Isle of Man from a UK resident

Postby ManxViking » Fri Jun 02, 2017 2:45 pm

I own a property in the Isle of Man which I am looking to sell. I currently reside in the UK although I am originally Manx.
If I were to sell the property what would be the best way to bring the funds over to the UK without suffering too large a tax bill?

Thanks in advance for any assistance....

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Selling property in the Isle of Man from a UK resident

Postby maths » Sun Jun 04, 2017 9:43 pm

If you are UK domiciled then you are liable to UK CGT on any gain made (offsetting any IoM CGT) and you can bring the funds to the UK without incurring any more UK tax.

However, if you are non-UK domiciled then any gain is not subject to UK CGT unless you remit the funds to the UK and you have claimed non-UK domicile status for UK tax purposes.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Selling property in the Isle of Man from a UK resident

Postby AGoodman » Mon Jun 05, 2017 10:59 am

Bear in mind that if you have been in the UK for 15 tax years (or more precisely 15 out of 20 tax years) including this one, you will likely be deemed UK domiciled for CGT.

The provision was taken out of the Finance Act 2017 but will likely be reintroduced later this month/July with effect from 6 April 2017.

If you are actually or deemed UK domiciled then the tax liability arises immediately on sale (payable under self assessment) and it unavoidable.

If you are still non-UK domiciled but need to bring the funds to the UK for personal use then there is little that can be done - you will pay tax immediately or (if you elect to be taxed on the remittance basis) when you bring the funds in. The only other way to bring funds in for the family is if you gave them to an adult child or adult grandchild offshore (they would have to open an account there) and they brought them to the UK. There would be no tax provided neither you, your wife or any minor children or grandchildren benefitted from them. You would need to take care if the money was given to your children that they did not use the money to benefit your grandchildren while they were under 18.

(the above presupposes that you have children and can afford to pay the relevant remittance basis charge, which starts at £30k after 7 years residence!)

ManxViking
Posts:3
Joined:Fri Jun 02, 2017 2:38 pm

Re: Selling property in the Isle of Man from a UK resident

Postby ManxViking » Mon Jun 05, 2017 11:56 am

Thank you both for your replies.

Firstly, I am UK resident for tax purposes with no offspring. Secondly, with reference to the CGT I forgot, and ought to add, that the property has been in the family for a few generations and has been passed down to me some years ago. I was wondering how this would stand for clarification of how much I have gained? 100% of the saleable value?

Thanks again in advance.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Selling property in the Isle of Man from a UK resident

Postby AGoodman » Thu Jun 08, 2017 10:25 am

No, your acquisition value will be the market value at the later of (a) when you received it or (b) 1982.

If it is (a) then you may have a probate value you can use. If not, because there was no probate or you received it as a gift, you may need a valuer to calculate a historical value.

You should be able to deduct the cost of any capital works to the property (improvements and structural changes rather than repairs)

ManxViking
Posts:3
Joined:Fri Jun 02, 2017 2:38 pm

Re: Selling property in the Isle of Man from a UK resident

Postby ManxViking » Sat Jun 10, 2017 8:05 am

And many thanks again for the reply.

All the information received is greatly appreciated.


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