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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have quiet a loaded question here. In a nutshell i used to be a UK resident. I liv

Resolved Question:

Hi
i have quiet a loaded question here.
In a nutshell i used to be a UK resident. I lived in Ipswich in my own house and got transferred to Bristol. I then bought a house in Bristol and moved back and forth between both properties.
I then got let go and moved to Canada a few years ago to work. I have now rented out both houses but haven't informed HMRC. I currently don't make profit on either as have to contribute to mortgage payments each month. I would like to sell one house next year but now I'm worried about the implications of not informing the tax man initially..Will there be a penalty of some sought.
What is the first step and what considerations would your recommend.
Also when i sell will there be Capital gains now on both properites?
Basically I'm looking for any information necessary to assist me in this situation. I want to make sure i am doing things above board.
Thank you for your help
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your question.There are a few aspects to be considered for tax purposes and it will take time to draft a response. I hope this is acceptable to you.In the meantime, it would be helpful if you provide salient details:- date of purchase for each property - Ipswich and Bristol- for how long was the Ipswich property your main residence- did you notify HMRC of change of main residence when you moved to Bristol- when did you leave the UK to settle in Canada- when were the properties first let- are they managed by a property agent- is tax deducted at source from rental income Many thanks
Customer: replied 2 years ago.
Thank you for your response
Answers as follows.Ipswich - jan 2006
Bristol Jan 2007Ipswich was main residence for 6 months. I lived in the Bristol one for over 5 years.
I didn't notify HRMC of change of main residence
I left Uk September 2012Ipswich property first let June 2007
Bristol first let September 2012
I am not using a property agent for either propertyI look forward to hearing from youOwen
Expert:  taxadvisor.uk replied 2 years ago.
Owen, thank you for your prompt reply.
It will take me time to draft a meaningful reply.
I hope a response to you tomorrow morning will be acceptable.
Have you received any communication from HMRC?
Did you file a form P85 when you left the UK for Canada?
Please confirm.
Thanking you in anticipation.
Customer: replied 2 years ago.
That you very much . Tomorrow will be just fine.
Its a question i should have asked for a long long time and regret being so foolish that i didn't act quicker on this so I'm hoping there can be a reasonable resolve to this situation.
Kind Regards,
Owen
Expert:  taxadvisor.uk replied 2 years ago.
Owen, thank you for being considerate.
I will revert to you tomorrow.
Have a pleasant day.
Many thanks
Expert:  taxadvisor.uk replied 2 years ago.
Owen, thank you for your patience.Here is my response and recommendation. I hope this is helpful.
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 2 years ago.
Thank you very much for your response
I will be rating you as Excellent..Much appreciated. If i have any further questions on this i will be sure to get in touch .
Kind Regards
Owen
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.
Best wishes.