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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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My mother bought some land in Brunei & built a bungalow on

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My mother bought some land in Brunei & built a bungalow on it.She could not put the property in her name but as I was born there she put it in my name. i have lived in the UK for a few years in rented accommodation initially as a student for 3 years then working in UK.
The property is expected to be sold for £75000 more than it cost-will I have to pay capital gains tax?
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
As HMRC explains: "Overseas assets are liable to CGT if you're 'resident' – or 'ordinarily resident' – in the UK."
You must work out the gain or loss separately when you sell, give away, exchange or otherwise dispose of property. Your profit would be liable for CGT.
The annual tax-free allowance (known as the Annual Exempt Amount) allows you to make a certain amount of gains each year before you have to pay tax.
Your annual allowance is £11,000. You can use your Annual Exempt Amount against the gains charged at the highest rates to minimise the tax you owe.
You won't get the Annual Exempt Amount if you're 'non-domiciled' in the UK and you've claimed the 'remittance basis' of taxation on your foreign income and gains.
Make certain to advise your tax accountant about the sale and to make sure you can use the allowance based on how you have been claiming your income.
Customer: replied 3 years ago.

Sorry forgot to mention- the property really is my mothers & she is entitled to the proceeds which she is going to use to move back to the UK.Is any capital gain really hers and as the property has been her main residence does this mean there is no capital gains liability?

Expert:  TaxRobin replied 3 years ago.
If the property is in your name and you are the actual legal owner (even if your mother is using it as her main residence)and your mother is not the actual owner but you are recognizing (by the circumstances of her purchasing) that she owns the property, that does not change the CGT for you.
The only difference would be if your mother legally owns the property, it is in her name, and she sells her residence, then you are not implicated at all in the sell.
If your mother legally owns the property you would not need to be concerned with CGT as you have nothing to do with the property. From your first statement, the property is listed as being owned by you. If that is not the case and your mother is the legal registered owner, then you would not report anything.
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