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Where Taxpayers and Advisers Meet

Selling property in Serbia

zmaj65
Posts: 3
Joined: Mon Jan 05, 2015 11:20 am

Selling property in Serbia

Postby zmaj65 » Mon Jan 05, 2015 11:31 am

Hello,
My father gave me as a gift flat in Belgrade in 2001. He was living in the flat since then. He died last month. I would like to sell the flat.
1. Do I need to pay CGT in UK? I live in the UK since 2000, domicile here and has citizenship since 2007.
2. When I transfer money from my account in Serbia to my account in UK do I need to pay any tax?
Thanks in advance.
Kind regards,
Z.

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Selling property in Serbia

Postby GlobalTaxAdviser » Mon Jan 05, 2015 7:54 pm

Hello

CGT would be payable from the value of the property in 2011 to the date of disposal since you are UK resident.

No tax would be payable on transfers since you are domiciled here hence remittance basis would not apply.

If you were non domiciled then it maybe in your favour when selling your overseas home

Kind Regards

Sash

zmaj65
Posts: 3
Joined: Mon Jan 05, 2015 11:20 am

Re: Selling property in Serbia

Postby zmaj65 » Mon Jan 05, 2015 11:44 pm

Thanks Sash.

I have got a property as a gift in 2001. How can I (or anyone else) know what was the value then? There was no financial transaction, it was a gift.

At that moment (2001) I was already 18 months in UK and working, paying taxes in UK so I guess it means I was domiciled although with Serbian passport and work visa.

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Selling property in Serbia

Postby GlobalTaxAdviser » Tue Jan 06, 2015 12:50 am

Hi

There are sources to gather the market value. An Estate Agent may be able to help you in Serbia or the Serbian internet sites similar to Zoopla which gives an history how much were properties sold

Domiciled is normally related to your father but you can change domiciliary by cutting off ties to Serbia and forming new ones in the UK e,g family, home, centre of vital interests etc. Domicile is not straight forward and can be subject to HMRC challenge. I would look into if you are indeed domiciled in the UK or not

Kind Regards

Sash

zmaj65
Posts: 3
Joined: Mon Jan 05, 2015 11:20 am

Re: Selling property in Serbia

Postby zmaj65 » Tue Jan 06, 2015 12:29 pm

Thanks Sash.
I would say that I would need to pay CGT in UK on sale of property. It seems that I don't need to pay any CGT in Serbia so double taxation agreement is not so relevant, for any relief. My vital interests are in UK (wife, children, work) but I have residence and passports of both countries. My father was born in Bosnia (Yugoslavia then). Same for me. At the moment the gift was made to me I was living in UK but had no permanent residency.
If this is too much for a free advice I will ask for a professional advice somewhere.

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Selling property in Serbia

Postby GlobalTaxAdviser » Tue Jan 06, 2015 1:27 pm

Hi

I would have thought CGT maybe payable in Serbia since tax on property is normally levied in the country where the property is situated and then double tax would come into play. I would check on the inheritance tax status in Serbia too since your father was living in the property.

Just thinking about domiciled it may not be an big issue since you can elect to be taxed on an arising basis

Kind Regards

Sash


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