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I am returning to the UK purposes next year from France and

Resolved Question:

Hello - I am returning to the UK for tax purposes next year from France and will be realising a capital gain on a forestry investment in Brazil - two placements from Dec. 2011 and Dec. 2012.
What relief will there be on this gain apart from the standard £11000 capital gain allowance.
Thank you for your help.
Mike Strong
Submitted: 8 months ago.
Category: Tax
Expert:  Sam replied 8 months ago.

Hi

Thanks for your question - I am Sam and I am one of the Uk tax experts here on Just Answer.

If you have been treated as not resident for UK tax purposes and make the sale before 05/04/2017 and return to the Uk after 06/04/2017 then you will have a NIL capital gain arising in the UK

If, however you are not treated as not resident for UK tax purposes - or return to the UK before 05/04/2017 and make the sale in this tax year or after, however its the timber that remains tax free rather then the increase of the sale of the land itself. unless you plan to reinvest into timber in which case there is consideration of business asset roll over relief.

Other than that there is just the annual exemption allowance which is currently £11,100 exempt.

Thanks

Sam

Customer: replied 8 months ago.
Thanks for the swift replySo in the second case scenario there is no taper relief - just the standard cap gain tax? At the moment we plan to return to the UK from Jan 1st 2017 and at the moment there are two cap gains - one this autumn Oct-Dec and one in the Spring of 2017. How do I manage the situation to pay the least tax? Regards Mike
Customer: replied 8 months ago.
I presume I will be liable either in the UK or in France depending on where I am deemed tax resident for the gain in question. The placement was organised by a European agency based in Majorca and Ireland.
Customer: replied 8 months ago.
I can't believe that there is no taper relief for a long term investment of this type - doesn't length of time invested count for anything?
Customer: replied 8 months ago.
Also rereading your answer I don't own the land its just the 'crop' - in this case Eucalyptus - so its the trees only.
Expert:  Sam replied 8 months ago.

Hi Mike

Thanks for your response

No there is no taper relief this as abolished years ago as was indexation- as capital gains rates were lowered and I cannot comment directly on your tax position as we are an information service, and cannot give personal advsie without representing you (which we are not permitted to do as per our affiliation with Just Answer) - you will need to engage an accountant directly to help you find the most cost effective solution.

Yes as per double taxation - you will have only one tax position to consider, and if you are caught in both the Uk and France then credit is given for the tax suffered in one country against the others. But who remains responsible for you tax jurisdiction does all depend on when you sell and when you leave France/return to the UK (where the placement wasmade should have no bearing)

If you could also allow me to deal with each of your posts at a time, each time I go to reply you add another piece of information and I have to rewrite my reply. (So If I have missed anything please do advsie)

Then there is no business asset roll over relief either if you do not own the land, - its just a straight forward capital gains position from the UK perspective

Thanks

Sam

Sam, Accountant
Category: Tax
Satisfied Customers: 13774
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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