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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 10386
Experience:  FCCA FCMA CGMA ACIS
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I am a German national living in the UK. After the death of

Customer Question

Hello, I am a German national living in the UK. After the death of my father in Germany the family home has been sold. I have got two questions. 1. The German solicitor requires my tax ID no which the UK does not issue in the strike sense. Do I register for self assessment to receive my UTR which I guess would be the closest to a TIN. 2. Would there be tax implications in the UK either as Foreign Capital Gains or as taxable foreign income (interest earned on a legacy) or both? Many thanks, Isabel
JA: What are the assets or property for this capital gain?
Customer: The sale of the family home.
JA: Anything else you want the Accountant to know before I connect you?
Customer: If I need to register for self assessment, I am not so sure which box to tick in terms of what might be taxable.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

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

Distributions from estates are outside the scope of UK taxation. Why not send your NI number if you have one?

Customer: replied 1 year ago.
I did send my NI and Employer PAYE reference number, but that didn't help. Doesn't the UK taxes income on a worldwide basis?
Expert:  bigduckontax replied 1 year ago.

Well it should, your PAYE reference number is ***** only valid indication of your tax account.

Customer: replied 1 year ago.
the UTR might actually not be more helpful?
Expert:  bigduckontax replied 1 year ago.

German accountants simply cannot understand that most British people never make tax returns at all and thus have no references to quote. Furthermore the concept of estate distributions being made free of tax are quite alien to them.

Customer: replied 1 year ago.
Sorry, I am slightly confused now. Please can you confirm that I will have to declare the estate distributions to HMRC as Foreign Capital Gains even if the funds stay in a German bank account.
Expert:  bigduckontax replied 1 year ago.

These do not need declaring, ever.

Customer: replied 1 year ago.
the boxes to tick on the SA1 form regarding taxable foreign income from land and property would just be in relation to rent etc? What about tax regarding any interests earned on a legacy - or in this case - earned on funds from the estate?
Expert:  bigduckontax replied 1 year ago.

Correct, rental income would be taxable.

Customer: replied 1 year ago.
What about tax regarding any interests earned on a legacy - or in this case - earned on funds from the estate?
Expert:  bigduckontax replied 1 year ago.

The same rules would apply.