How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15716
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

Hi there, I have inherited a property abroad (Zimbabwe)

Resolved Question:

Hi there,

I have inherited a property abroad (Zimbabwe) and will gain about £50,000 from it if I sell it. If I try and bring the money into the UK (I am a resident and citizen) what are the tax implications? I am retired on medical grounds as I have a terminal illness so have no employment if that makes a difference.

Any advice would be appreciated
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
Most assets are liable to Capital Gains Tax when you sell or dispose of them. These include shares, property, business assets and personal possessions - whether they're in the UK or overseas.
You inherited it after 31 March 1982 - you use its market value on the date of death of the person who left it to you for the cost. Your gain would be the difference in cost (less any fees or commission for professional advice or services, for example, Capital Gains Tax valuations, solicitors' and estate agent or advertising fees) and sell price. That is the amount you will pay tax on not the total of the sale.
The basic rate band for 2013-14 is £32,010. So that is applied first. You only pay Capital Gains Tax if your overall gains for the tax year (after deducting any losses and applying any reliefs) are above the 'Annual Exempt Amount'. This amount would be £10,900. You can use your Annual Exempt Amount against the gains charged at the highest rates to minimise the tax you owe.
Example:
The basic rate band is £32,010. you have not used any of this amount against your income(because you stated you had no income) - so you would have £32,010 remaining.
If your gain were 50,000 , you have enough of the basic rate band remaining to cover his gains, so they are all to be taxed at 18%. You now deduct your tax-free allowance of £10,900 and pays Capital Gains Tax at 18% on £7090.
I hope this information is helpful.

Customer: replied 3 years ago.

Many thanks,


 


When I stated I had no income I forgot to mention that I receive a monthly pension of £890 per month as part of my medical retirement as well as Disability benefits amounting to about £400 per month.


 


Does this mean I use the monthly pension etc against the basic rate band, before I work out the 18%?


 


Apologies, I never really thought of the pension etc as an income.


 

Expert:  TaxRobin replied 3 years ago.
Yes, you would need to use that in your calculations.
TaxRobin and other Tax Specialists are ready to help you