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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13707
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I was resident in Zimbabwe in 2012 and returned in 2013 but

Resolved Question:

I was resident in Zimbabwe in 2012 and returned in 2013 but brought a plot of land in uk to build a house and got planning permission for a house for my return to uk could not raise money to build it brought 2010 so sold the site before my return and the tax office who have been given info from my brother in law have asked me to make a self assessment for 2012 and a capital gains assessment for the land even though not resident and easily provable
in addition I was a director of a company bvi while non resident which sold a property in uk while away do they have to chase me or the company for gains or should I not be liable for either because I was res in zim for 10 years including the year 2012 confirmed b zim tax authorities
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.
Can you advise
1) dates you arrived in the UK
2) dates you left the UK
3) The exact date this land was bought
4) The exact date the land was sold
As Im a little confused about your comings and goings to the UK, and this will also help me advise your tax residency status for UK tax purposes, and then I can advise regarding self assessment and capital gains.
Thanks
Sam
Customer: replied 2 years ago.
Arrived on uk jan 2013
Left uk in 2000
Land brought June 2010
Land sold sept 2012
Expert:  Sam replied 2 years ago.
Hi
Thanks for your response
How can you leave the UK before you arrived? Were you originally British born and bred?
Did you purchase the land from abroad?
Thanks
Sam
Customer: replied 2 years ago.

I left the uk in 2000 approx and returned 2013 told tax when I left

british born

purchased land while living aboard

Expert:  Sam replied 2 years ago.
Hi Aidan
Thanks for your response
Due to the fact that you sold the land and returned to the UK in the same tax year - this is why HMRC are expressing an interest is the land.
Had you sold the tax year before your return (so prior to 06/04/2012) then this would not be an issue as
1) you had lived abroad for at least 5 full tax years
2) You had (it would appear) to have been treated as not resident for the whole period abroad.
But due to the fact you sold this land in the same tax year that you returned, and the fact this land is situated in the UK, then usually capital gains would arise on the profit made on the sale, so its right that HMRC are asking you to complete the self assessment tax return.
But in your favour you WILl qualify for relief on the sale of this land under Extra Statutory D2 - as you HAD been out of the UK for at least 5 years prior to your return, during which time the sale took place.
So you will still need to complete the self assessment tax return along with the capital gains page, as this is a UK position, you also will need to fill in the residency page, which will show HMRC that you are to be treated as not resident for the period up to Jan 2013, when you arrived back in the UK.
And only any income that you drew from the company in Zimbabwe - from the period Jan 2013 to 05/04/2013 will be liable to UK tax. As the company is situated abroad, and therefore the profits from the company do not fall into UK tax jurisdiction at all, just the money you took personally out of the company for the time you were in the UK for that tax year.
So overall your thought process with both matters is correct.
let me know if you have any follow up questions. Bu it would be appreciated if you could rate the level of service I have provided, as this ensures I am credited for my time.
Thanks
Sam
Customer: replied 2 years ago.
I sold the land in the tax year before I returned to uk so in the tax year ending April 2012 and returned in the next tax year does this make a difference
Expert:  Sam replied 2 years ago.
Hi Aidan
Thanks for your response
No you returned in the same tax year - as you sold Sept 2012 and then returned to the UK in Jan 2013 - the tax year runs from 06/04/2012 to 05/04/2013 - so its the same tax year.
So a different year nut same tax year!
But it would make no difference as you sold before you returned to the UK AND had achieved more than 5 years as not resident in the UK, during which time this land was sold.
Thanks
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13707
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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