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Where Taxpayers and Advisers Meet

Returning Expat to UK - Tax Implications

bangkokbanger
Posts: 2
Joined: Wed Oct 10, 2018 10:20 am

Returning Expat to UK - Tax Implications

Postby bangkokbanger » Wed Oct 10, 2018 1:24 pm

Hi i wonder if anyone here can help

Long term (over 20yrs) expat returning to the UK, no uk property owned.

I am planning to sell stocks and property and bring cash into UK before return.(stocks and property all bought and sold with funds from work while overseas).

q1. is there any tax on cash brought into the uk ?


Also i am considering holding overseas property and remitting rental income from the overseas property into the uk

q2. From the date of my return will there be income tax to be paid on the amount remitted int the uk ? (FYI there is a double taxation treaty in place between my country where the property is held (Thailand), and the UK.



q3. if i sold my current house and and remitted the funds AFTER returning to the uk do any of the following taxes apply


- income tax in the time between when i returned to the uk and sold the property and remitted the funds into the uk. Do the sale proceeds constitute income ?

- does capital gains apply from the time between when i returned to the uk, and sold the property and remitted the funds into the uk .
OR
- from the time which the property was originally purchased 10 yrs ago or so, until the time the property was sold.

Thanks in advance

AGoodman
Posts: 472
Joined: Fri May 16, 2014 3:47 pm

Re: Returning Expat to UK - Tax Implications

Postby AGoodman » Wed Oct 10, 2018 4:41 pm

q1 No - no tax just for bringing it in. Bear in mind that tax is charged on a tax year basis so you need to either sell assets prior to the tax year you move to the UK or qualify for split year tax treatment (see RDR1)

q2 Once in the UK, the default position will be that you will be liable on your worldwide income and gains. Remittances are irrelevant unless you elect to be taxed on the remittance basis which is not to be undertaken lightly (you would lose your income tax personal allowance for a start). As you describe yourself as a returning expat, the remittance basis may not be available to you anyway. In most cases, you would get credit for foreign tax payable.

q3 See above - you need to ensure you are non-resident when you sell. Remittance is probably irrelevant. If UK resident, the default position is CGT on the gain since buying (measured in sterling values at acquisition and disposal) but you could qualify for PPR relief if it was your main home that you sell.

bangkokbanger
Posts: 2
Joined: Wed Oct 10, 2018 10:20 am

Re: Returning Expat to UK - Tax Implications

Postby bangkokbanger » Wed Oct 10, 2018 5:56 pm

Thanks for this

"get credit for foreign tax payable"

So does this mean the income tax paid in the foreign country means there wouldnt be any tax payable in the uk given there is a double tax agreement or am i looking at paying tax in both jurisdictions !


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