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 bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3830
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

10 years ago I bought a commercial property in Canada, for

Customer Question

10 years ago I bought a commercial property in Canada, for $143,000 in advance of us emmigrating, which we never did due a change of circumstances. British born, we remained UK residents. The money to purchase this property was sent from the UK, a remortgage of our UK property, which was then our own only residence.
Though we were able rent out the property out for a few years, we took no profit from the building, all proceeds went in Canadian Taxes, maintenance, refurbishment, other bills etc
This year after, years of trying, we have sold the property for less than we paid. Once Canadian Tax is paid and after all outgoings, we should be left with approx $125,000.
We would like to bring this money back to the UK. What must we do in terms of HMRC? Could we be liable to Tax? How should we transfer the funds?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

Absolutely nothing, well not quite! You are liable to UK Capital Gains Tax (CGT) on the sale of your second house in Canada, but as you did not make a gain there is no tax to pay.

You should report this capital loss to your tax office if you do not regularly self assess. If you do self assess then enter the loss on the form. You have 4 years in which to claim this loss.

The loss is allowable against any capital gain you have made in the year of the loss eg from trading stocks and shares. Otherwise it is carried forward to future years and is available to offset capital gains made in the future. Remember you have an Annual Exempt Allowance (AEA) of 11K this year so don't fritter your capital loss by offsetting gains below the AEA.
Customer: replied 3 years ago.
Many thanks. How do I report this to HMRC and to whom, as I do not self assess?
Expert:  bigduckontax replied 3 years ago.

By letter to your tax office. If you do not have one of those then to:

 

HM Revenue & Customs

Capital Gains Tax

PO Box 1970

Liverpool

L75 1WX

 

Please be so kind as to rate me before you leave the Just Answer site.

 

 

 

 

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.

Related Tax Questions