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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15447
Experience:  International tax
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I am selling a property abroad and want to bring the same

Resolved Question:

I am selling a property abroad and want to bring the same amount I originally invested back into the United Kingdom. I will be leaving the gain abroad. Are there any tax implications?
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.

Hello

You pay Capital Gains Tax when you ‘dispose of’ overseas property if you’re resident in the UK.

This is so even if you leave the gain abroad.

You may also have to pay tax in the country you made the gain. If you’re taxed twice, you may be able to claim relief.

Non-residents may have to pay UK tax on overseas property if they return to the UK within 5 years of leaving.

You do not have to bring the gain back to the UK for it to be taxed. If you are a UK resident then you are taxed on the gain.

Your gain is usually the difference between what you paid for your property and the amount you got when you sold it.

Customer: replied 1 year ago.
Hi,
How do i pay CGT if I'm not bringing the extra amount back. The property is in the UAE.
Expert:  TaxRobin replied 1 year ago.

You need to report the sell under self assessment. If you are a UK resident then it does not matter if the property is abroad or in the UK.

Customer: replied 1 year ago.
If the property is in joint names and one person is retired and does not pay tax, do they have to apply for a self assessment and pay CGT at the basic rate. I understand there is CGT relief that we can claim.
Expert:  TaxRobin replied 1 year ago.

You are allowed reliefs and if jointly owned then each reports based on their own ownership. The costs and sale are split and reported.

Individuals have an annual allowance of £11,100. If you meet the conditions for private residence relief (PRR), you do not have to pay capital gains tax on your main home. Both non-residents selling UK residential property and UK residents selling residential property abroad may still be able to get this relief if they meet new qualifying conditions.

TaxRobin and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
OK Thanks. Thats not going to make a dent in the gain value unfortunately.
Thanks for your help.
Expert:  TaxRobin replied 1 year ago.

You are most welcome.

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