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 TonyTax Your Own Question

TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15751
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I am a Swedish citizen and UK resident since 1987. My two

Resolved Question:

I am a Swedish citizen and UK resident since 1987. My two children are also UK residents. I wish to give them a lifetime gift in the form of a flat I own in Stockholm (present value approx £180,000). What re the UK tax implications if I die before 7 years have past since gift?

Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi.

As you have been resident in the UK at least 17 of the last 20 years (changing to 15 out of 20, see below), you have acquired a deemed UK domicile so your worldwide estate will be liable to UK IHT in the UK. The nil-rate band of £325,000 is first used against gifts made in the seven years before death. Any part of a gift not covered by the nil-rate band may incur a lower IHT liability due to taper relief which you can read about here. There is some useful information on IHT and double tax relief here.

The gift of a property is a disposal for Capital Gains Tax purposes, the same as if you had sold it for its open market value. As things stand now your capital gains are free from UK CGT if you do not remit the gain to the UK. However, whilst there is no cash gain here, as your sons are UK resident, I would say that the "gain" will need to be disclosed to HMRC. You may be entitled to some main residence relief and letting relief if the property was ever your main home and let for letting relief purposes. You can read about the main residence and CGT here. See section 9 of RDR1 here for information on the remittance basis of assessment.

From April 2017, as you can read here, it is proposed that non-domiciled individuals who have been in the UK for 15 out of the previous 20 years will be deemed to be UK domiciled and taxable on all theirworldwide income and gains as a UK domiciled individual is. The remittance basis of assessment will no longer be available for such individuals. These are just proposals right now but are likely to be enacted even if in a chnaged form once representations have been considered.

I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.

Thank you, ***** ***** has given me lots of information to chew on.

Expert:  TonyTax replied 1 year ago.
Thanks.

Would you mind rating my answer before you leave the site please.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15751
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions