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Where Taxpayers and Advisers Meet

Tax on repatriation of money to UK from a sale

purephil
Posts:1
Joined:Mon Jan 15, 2018 1:04 pm
Tax on repatriation of money to UK from a sale

Postby purephil » Mon Jan 15, 2018 1:23 pm

Hello! Hope everyone is having a great start to 2018!

Was unclear as to whether to post this in CGT or Intenrational.

We are due to sell a property in Mexico, and I understand this is subject to CGT in the UK - but we will pay 35% CGT under MX tax law which I understand will exempt us from paying additional CGT here under double-taxation agreements.

With this sale however, as our flat is currently rented the buyer wants to retain the flat as-is with renters in place, obviously then with the new buyer receiving future rental income. Fine. Since the flat is fully furnished he has offered us a decent sum to cover all the furniture in the apartment.

With respect to the above I have then 3 questions / confusions I can’t seem to find answer to including on this forum:
1) the proceeds from the sale of the furniture - are they liable to tax when brought back to the UK? It’s not income. We will have a contract for the purchase of furniture with the buyer
2) I don’t know the exact value of years of furniture, lamps, plates, paintings etc. The value we were offered seemed reasonable and we accepted. However our concern would be we are challenged by HMRC to evidence everything sold so that it is not liable for tax. Thoughts?
3) are we correct in assuming if we pay (with evidence) to the MX tax man from the sale of our property 35% CGT - that we would not be liable for any additional tax in the UK?

Thanks in advance to any help offered
P

DavidTreitel
Posts:271
Joined:Thu Aug 16, 2012 4:31 pm

Re: Tax on repatriation of money to UK from a sale

Postby DavidTreitel » Mon Jan 15, 2018 8:26 pm

Are you calculating the gain correctly in Sterling? Given the sharp fall in the value of Sterling it is likely to be much higher than you are thinking.


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