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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13808
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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My husband and I are UK citizens, and relocated back to the UK after 9 years working in th

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My husband and I are UK citizens, and relocated back to the UK after 9 years working in the USA .
We have ahd our tax returns on both sides of the Atlantic prepared with assistance from Deloitte - engaged by the company we work for .
Since we moved we had rented our house in Herfordshir and this was clearly declared on every tax return on both sides. We had owned the house since 1997, and then needed to sell the house before returning to the UK. Our return was due to my sister being diagnosed with a terminal illness and my husband and I being listed as the childrens legal guardians if my sister and her husband passed away.
My issue is that despite being aware of this house, and our need to raise capital to purchase a new property, the only time we were told that we shouldn't have sold it whilst we were still US residents ( with a green card) was after we had sold it, and were told calmy by Deloitte USA, that we would be liable for a $61,000 tax bill to be paid before we left the USA
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi
Thanks for your post - can you advise what your question is as you will actually have a UK liability if you are now in the UK and selling whilst back in the UK and this relates to the UK property and will not have a USA tax liability. If this is re selling a property in the USA then you will have a USA liability (and this will have to be managed through Deloitte to get a refund back as it was your main home AND you are no longer living in USA)
If this is not what you needed to know then please advise furtehr (as I am somewhat reading between the lines)
Thanks
Sam
Customer: replied 1 year ago.
Thanks
Actually it was around the fact that we were poorly advised by Deloitte on the US tax position and implication of selling a UK house, whilst living in the USA.
So my issue is can I complain formally to Deloitte for lack of professional advice, and seek to reclaim some of the huge IRS tax bill we were left with, due to the lack of timely advice.
If so is there a time limit for me doing this complaint.
I'm assuming they have a fund for complaints and professional mis conduct.
My complication is that they are still engaged as our tax services supplier and I don't want to jeopardise my job by complaining - despite needing the money.
Catch 22 really.
Thanks
Expert:  Sam replied 1 year ago.
Hi Thanks for your response I am afraid I cannot advise on USA tax policy BUT I certainly can agree that had you waited until you returned to the UK to sell (if this was even feasible) then you would have had a UK capital gain instead - whether this affects the position when compared to the USA capital gain suffered remains to be seen but they clearly did you advise you of your full options which I agree is a failure on their part. So I would make a formal complaint but you do not indicate how much time has lapsed ince 1) The advise was given2) The advise was implemented When did the sale of this UK property take pace and when did you return to the UK? Thanks Sam
Customer: replied 1 year ago.
The advise was given
In November 2014 - after we had started the relocation discussions with Deloitte - although they had known this for at least 12 months before we actually had formal discussions. It was also noted on my previous tax return notes in 2013.
They also knew we'd had a house in the UK for the full 9 years of working in the USA as it was every tax return on both sides - UK and USA..2) The advise was implemented
we had no option but to pay the $61,000 capital gain tax in the US before we left the country in December 2014 - so we had about 6 weeks between being told of this and making the payment.When did the sale of this UK property take pace and when did you return to the UK?
Sale of the UK house was September 2014, we moved back in December 2014.
We needed somewhere to live!I'm fully aware that needed to pay tax - but we weren't given the options of either
Not selling the UK house and just renting until we moved home and so not being liable for US tax.
OR we were told one of us could have moved home and made it our primary residence - which was un realistic as both my husband and I work for the same company. My husband had to resign his position anyway and I relocated.Hope this clarifies and I can feel secure in making a proper complaint.?
Expert:  Sam replied 1 year ago.
Hi Thanks for your response and the additional information I agree that you were not given the options - and that does matter. But would you like me to create a small UK liability review - so you can see IF it made too much difference which may then help you decide whether this is worth proceeding with a complaint.If so then I will have to offer this as additional services (which I am afraid will incur a furtehr charge as its over and above what was asked for - and we have to do this via Just Answer policy I am afraid) and then would need some additional information to carry out this exercise for you (which I will ask for if you would like to proceed) Thanks Sam . If so (fo
Customer: replied 1 year ago.
Hi
thanks - before committing more I'd like to get an estimate of costs on both options
Liability Review
Additional services.
What material would I have as a final document or proof, to show valid complaint or claim potential.
Thanks so much.
Alison
Expert:  Sam replied 1 year ago.
Hi Thanks for your response With the posting a new question you set the price to what you feel the work is worth - if I send an additional service request I ask for what I feel the question is worth - but either way you will get the full UK capital gain calcualtion This is not to handle the complaint for you - it would just be the UK capital gain calculation so you can see, that had you sold after you had returned to the UK what it would have cost in UK liability to compare with the fact you sold the property before returning to the UK and the gain you sufferedSo its more for your information so you can determine whether you have a complaint at all (as if the liabilities are much of a muchness then it helps you perhaps not pursue this with Deloitte) Let me know if you wish to proceed, if not then you can just click rate/accept to acknowledge the question you initially asked having been fully answered as you do have course for complaint as NOT given all the options to make an informed choice. Thanks Sam
Customer: replied 1 year ago.
Hi Sam,
Thanks I understand it a calculation not the actual complaint - just the evidence to decide to make a formal issue of the lack of information we received.
I'd like to go ahead with the calculation, and then we can decide if it's worth it to fight them.
Thanks
Expert:  Sam replied 1 year ago.
Hi
I shall then send you an additional services request with a suggested amount to undertake this for you
Thanks
Sam
Expert:  Sam replied 1 year ago.
Hi
Would you still require some assistance with the additional work you asked for
If not then please do rate me for the level of service provided (or click accept) as this ensures Just Answer credit me for the time I spent on your initial question
Thanks
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13808
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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