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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15958
Experience:  International tax
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I am a dual citizen of Sri Lanka & UK and Live in UK. I have

Resolved Question:

I am a dual citizen of Sri Lanka & UK and Live in UK. I have some shares in Sri Lanka which I plan to sell. These shares had been bought for me by my father over 60 years ago the value of which has grown over the years. The Central bank in Sri Lanka has relaxed their rules and allow you to transfer upto £150,000 to your bank in UK. I intend selling the shares and transferring the money to UK. Sale of share in Sri Lanka are not liable to capital gains. Am I liable to UK tax when the money comes to UK and if so at what rate?
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloYes you will be taxed on the gain from the sale.Because the shares were purchased and you owned them before April 1982 you will use the market value as your starting point. This would be the market value 31 March 1982. You’ll either pay 18% or 28% tax on your gains if you’re a basic rate taxpayer. How much you pay depends on the size of your gain and taxable income. You’ll pay 28% tax on your gains if you’re a higher rate payer.You can apply your personal allowance (based on your age and income). The standard Personal Allowance is £10,600.It all depends on your actual gain.I know rating takes an additional step and I truly appreciate it when you take the extra time!You have to actively click on a rating (OK or Better) and click submit. Smiley Faces or Stars.When you actively click on a rating and click submit, that lets Just Answer know you were assisted and credits me for the time.
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Customer: replied 1 year ago.
Thank you for your answer. Please also answer the following queries. 1.How do I calculate capital gains. Is it the difference between the price I purchased the shares and the price I sell it at? or is there some sort of depreciation over the number of years I held the shares? Is there some sort of formula for the depreciation?
2. As I mentioned the Central bank in Sri Lanka allows only £ 150,000 to be taken initially but anything above that could be taken a
£10,000 once a year year . My question to you is that since I am selling the shares altogether and after transferring the initial £150,000 to UK and subsequently transferring £ 10,000 once a year how do I calculate the capital gains on the £10000?
3. I also want to sell my house in Sri Lanka and the transfer the money to UK at the rate of £10,000 once a year (All the taxes from the sale will be already paid in Sri lanka) . What would be my tax liability in UK when the money reaches UK
Thank you in anticipation of your answers
Expert:  TaxRobin replied 1 year ago.
As your initial question was about the sell of shares, I can respond to the followup about gain or loss on the shares. the calculation is based on gain. You start with the fair market value on 31 March 1982 and then the difference in that and the sell price is the gain or loss. You do not count any loss during specific years, in other words you only look at the 1982 date and the sell date.You must post all those additional questions as new (site rules).