How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 7691
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

Citizen, but resident of the UK. In 2013 my old parents for

This answer was rated:

Hello, I am Lithuanian citizen, but resident of the UK. In 2013 my old parents for their security gifted me their flat. My mum passed away in 2013. In 2017 my father visited me in the UK. In 2018 my farther decided to move to the UK, to stay forever. I have sold the house. My father moved to the UK. Then he decided to move back. The money have all that time been in Lithuania. The sale of the property has been declared in Lithuanian Tax office. There is "Double taxation treaty" between Lithuania and UK. Do I have to pay tax on the money I got from the sale of the flat?
JA: When was the property or asset sold?
Customer: in 2018
JA: Anything else you want the Accountant to know before I connect you?
Customer: I have nothing to add, I think.

Hello and welcome to JustAnswer. I amCustomerand here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

As a resident in the UK for tax purposes, you are taxed on your worldwide income and gains arising in the year.

Gain from sale of flat in Lithuania will be chargeable to capital gains tax in the UK. You will claim foreign tax credit relief for tax paid to Lithuanian tax authoriotyies under double tax agreement betwen the two countries.

You should report the gain in GBP using foreign exchange rates prevailing at the time of transaction.

My aim is to give you a professional service. I hope this is helpful and answers your question.

If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 13 days ago.
I di not have any gain .
Customer: replied 13 days ago.
I di not have any gain, for that reason I did not have to pay tax in Lithuania. So the property I got as a gift was valued around 70 000 Euros at the time it was gifted and at the time it was sold.

Thank you fo ryour reply.

If you did not make a gain but a loss then you can report the loss. This would enablae you to get loss relief against any future capital gains. You need to covert Euro into GBP using exchages rate prevailing at the time of transaction.

Example exchange rate when gifted to you Euro1.30/GBP1

Exchange rate when you sold Euro1.18/GBP1

Purchase price (70,000/1.30) £53,846

Sale procceds (70,000/1.18) £59,322

Gain on sale £5,476

Gains allowance £12,300

CGT payable NIL

More information on capital losses relief here

https://www.gov.uk/capital-gains-tax/losses

I hope this is helpful and answers your question.

Customer: replied 13 days ago.
I would prefer to communicate in writing, as my accent is very strong and some people struggle to understand me. I would also like to asked how to claim capital loss on depreciation of the car, which used as a taxi. You can charge me £44, but please answer my question in writing. Thank you.

Thank you for your futher question.

I suggest you take my offer of premium service and I will happily help you further

In the meantime, if there are no other issues I will appreciate if we could regard the original question as been answered/accepted.

Many thanks

taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 13 days ago.
I am sorry, but I still need to ask you to confirm, please. Did I understand correctly that GIFT and PURCHASE have the same meaning for tax prepuces?

I thank you for accepting my offer.

The value of property that is gifted is the same as purchase price had you paid for it for capital gains tax purposes.

I hope this is helpful.

Customer: replied 13 days ago.
Would you answer on to my question about depreciation of the car?

Your question is to do with capital allowance on a car that is used as taxi.

You can claim capital allowance on your car used as a taxi, but annual investment allowance (AIA) and first year allowances cannot be claimed, unless this is a Hackney carriage (i.e. a traditional 'London black cab' type vehicle) or a low CO2 emission car.

Your capital allowance will be based on CO2 emissions of the car.. if between 50g/km and 110g/km then you claim main rate allowance of 18%. If CO" emissions are above 110g/km then you claim special rate allowance of 6%.

More information on capital allowance for business cars here

https://www.gov.uk/capital-allowances/business-cars

My aim is to give you a professional service. I hope this is helpful and answers your question.

If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 13 days ago.
Thank you for the help.

Thank you for your kind words.

I hope this is helpful and answers your question.

Best wishes.