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Where Taxpayers and Advisers Meet

UK taxes on buying and selling property

snm
Posts:4
Joined:Wed Aug 06, 2008 3:26 pm

Postby snm » Sat Jul 16, 2005 1:20 am

Hi,
I am non resident UK citizen and own a property in the UK which has been rented out. I now wish to sell this property and purchase another one in the UK. Can anyone please tell me what will be tax liabilities ?
Many thanks in advance.
mns.

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

Postby maths » Sat Jul 16, 2005 6:13 am

Assuming you are not resident in the UK on the sale there should be no UK tax liabilities.

You should have been declaring the "profit" each UK tax year from the property (ie rents less expenses).

The purchase of a new property will involve you only in stamp duty which will depend upon the value of the property.

snm
Posts:4
Joined:Wed Aug 06, 2008 3:26 pm

Postby snm » Sat Jul 16, 2005 7:46 am

Thank you very much for your time.

AA UK
Posts:270
Joined:Wed Aug 06, 2008 3:22 pm

Postby AA UK » Sat Jul 16, 2005 11:27 am

snm - In addition to maths commments, you will need to be certain that you are non-resident and not ordinarily resident for five complete UK tax years and consider what the tax position is in your country of residence.

snm
Posts:4
Joined:Wed Aug 06, 2008 3:26 pm

Postby snm » Sun Jul 17, 2005 2:03 am

Thanks AA UK. I am non resident UK citizen and been living abroad for many years. I have also been paying UK taxes on the UK rental income. Every few years UK tax authorities sends me tax forms to fill in. As regards taxation in my current country of residence, the less said the better - its too depressing!

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

Postby maths » Sun Jul 17, 2005 3:11 am

Hi AA UK

Always interested in your riders to my comments!

My rider to yours is that the 5 year rule applies only if prior to departure from UK you have been resident for at least 4 of the previous 7 tax years!!

Any more riders left- probably!!

Good luck snm.

AA UK
Posts:270
Joined:Wed Aug 06, 2008 3:22 pm

Postby AA UK » Sun Jul 17, 2005 1:11 pm

Hi maths - I like you relish that tax is an art not a science, so there are more possibilities than either of could consider fully.

As it says at the top of this page everybody should "get detailed advice specific to your particular circumstances". This Forum by its nature never has enough space for every permutation; indeed many of the people posing questions only want short pithy comments as against every section number from the Taxes Acts.

The comment here about tax being depressing is sadly true, but of course not ignorable, but possibly one that could be resolved through creation of a suitable company or trust depending on the jurisdiction one is addressing...

bongo666
Posts:1
Joined:Wed Aug 06, 2008 3:27 pm

Postby bongo666 » Wed Jul 20, 2005 5:22 pm

Hi all,
I'm in a similar position. I have owneed a property in the UK for the last 16 years. I have been out of the country for at least 7 years and have now taken up Auastralian Citizenship (so now am dual UK/Australian citizen). I lived in the property until I left for overseas, and sinec then have rented out the property. I have paid UK tax on the rental income.
I am not buying another property in the UK, but will transfer the money over to Australia. What are my CGT liabities in the UK?

AA UK
Posts:270
Joined:Wed Aug 06, 2008 3:22 pm

Postby AA UK » Thu Jul 21, 2005 12:44 am

Because you are not resident and not ordinarily resident in the UK there is no UK tax on the gain.

However Australian tax will have been due on the rental income and will be payable on the gain. Therefore you will need to take advice locally as well.


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