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Sam, Accountant
Category: Tax
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What is the tax implication of a US non-domiciled owning

Customer Question

what is the tax implication of a US non-domiciled owning property in UK
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

In basic terms none whatsoever. Any income derived from the property would be subject to UK Income Tax (IT) and any gain made on disposal, unless it were your sole or main domestic residence, would be liable to Capital Gains Tax (CGT). Under the Double Taxation Treaty between the UK and the USA, and,indeed, many individual States within the Union too, any IT or CGT paid in the UK would be available as a tax credit against any US tax liability on the same income or capital gains stream. You would also have to pay Stamp Duty Land Tax (STLT) or its Scottish equivalent on purchase depending on the consideration given on acquisition. You need to notify HMRC of any disposal within 30 days of sale. As a non domicile Inheritance Tax (IHT) would not be levied on death.

I do hope that you have found my reply of assistance.

Customer: replied 1 year ago.
Helpful thanks
Expert:  bigduckontax replied 1 year ago.

Delighted to have been of assistance.

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