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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 16670
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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If I have some funds from a property sale abroad, and

Customer Question

If I have some funds from a property sale abroad, and transfer the funds to the uk, what tax will be applicable on it?
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: no nothing else than the question above
Submitted: 15 days ago.
Category: Tax
Expert:  TonyTax replied 15 days ago.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Expert:  TonyTax replied 15 days ago.

Are you a UK or a foreign national? How long have you lived in the UK?

Customer: replied 15 days ago.
Uk citizen
Lived in uk since 2007
Expert:  TonyTax replied 15 days ago.

If you were born in the UK to British parents then you are taxable on your worldwide income and gains whether you bring then into the UK or not. You would be liable for Capital Gains Tax on a property gain but would be get credit for any foreign tax paid in the country where the property is situated. CGT is charged on residential property gains at 18% or 28% depending on the level of your income in the tax year the gain is made.

If you were not born to British parents, then you may be non-UK domiciled which gives you the following choices:

1 You can be taxed as any UK national resident in the UK is, ie on their worldwide income and gains.

2 You can choose to be taxed on your UK income and on non-UK income that you remit to the UK with credit being given for foreign tax paid on against any UK tax liability on the same income or gians.

See Section 9 of RDR1 for more information on the remittance basis of assessment.

After you have been resident in the UK for 7 of the previous 9 tax years, you will have to pay the remittance basis charge if you wish to continue to use the remittance basis of assessment. See paragraphs 9.29 to 9.43 of RDR1. The charge increases after you have been resident in the UK for 12 of the previous 14 tax years. After you have been resident in the UK for 15 of the previous 20 tax years, you are for all intents and purposes taxed in the same was as a UK national, ie on worldwide income. See here.

I hope this helps but let me know if you have any further questions.

Customer: replied 15 days ago.
If my annual salary is 85000
And I remit £100000
How much tax would I need to pay if I was not born to British parents - please give all the options and which will save tax. For example if I pay tax in India before transfer or if I transfer pre tax
Expert:  TonyTax replied 15 days ago.

I need to know what the gain is not the sale proceeds.

Customer: replied 15 days ago.
How do I calculate the gain
The proceeds are from sale of house
The house was inherited and in my name
Expert:  TonyTax replied 15 days ago.

The gain will be the sale proceeds less the value when you inherited it.

Customer: replied 15 days ago.
The value when I inherited it is more or less the same as the sale proceeds
Customer: replied 15 days ago.
Or in other words I did not pay for the property- it was gifted to me
Expert:  TonyTax replied 15 days ago.

If the value of the property when you inherited it is the same as the sale proceeds then you will have no capital gain so you can bring the money into the UK tax free.

Customer: replied 15 days ago.
on Transfer deed to me there is value of property mentioned
On sale deed the sale price is mentioned
Is that sufficient for proving no capital gains ?
So I can bring that much fund tax free as you confirm
Can I meet you in person to discuss details ?
Expert:  TonyTax replied 15 days ago.

I cannot meet you in person and there really is no need. This is very straightforward.

You have documents confirming the value and the sale price so keep them in case you are asked by HMRC. You will need to report the disposal in a tax return even though there is no taxable gain.

Only income and capital gains you bring into the UK are taxable, not what is effectively savings.

Expert:  TonyTax replied 14 days ago.

Hi again.

I'm just following up to find out if my answer helped or if you have any further questions. If not, would you mind rating my answer so that I get credited for my work.

Customer: replied 13 days ago.
That’s fine thanks
Expert:  TonyTax replied 13 days ago.

Great. Would you click on one of the positive stars please.