Declaring overseas property
Jul 2nd 2007, 1:47 pm
#1
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Joined: Jul 2007
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Declaring overseas property
If you buy a property within Europe does the country automatically notify the UK Inland Revenue of this purchase or is it up to the individual to declare it ? 
Jul 2nd 2007, 2:51 pm
#2
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Re: Declaring overseas property
I doubt many, if any countries notify HMRC of a property purchase, but don't forget by buying that property you may become liable to taxes in that country.
Jul 6th 2007, 6:38 am
#3
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Joined: Apr 2007
Posts: 58
Re: Declaring overseas property
Freedom of tax information between countries in Europe is now tightening up significantly under the guise of money laundering and anti terrorist legistlation. As a matter of interest the Inland Revenue have a department established in Spain, why I wonder ?
It is a fact to say that there is a two way flow of information between Spain and the UK, France and Germany, other countries are to follow. I know this because I was at an Inland Revenue meeting in Centre 1 before Christmas. So tread carefully, if you do try to hide any information and you say rent the property out or even sell it at a profit and do not declare income and gains to the Inland Revenue then you could have a problem. However, at the same time long term expats from the UK are not subject to capital gains taxes in the UK and even foreign income is irelevent for UK tax purposes. As the previous correspondent advised you may have some form of tax liability in the country that you buy.
It is a fact to say that there is a two way flow of information between Spain and the UK, France and Germany, other countries are to follow. I know this because I was at an Inland Revenue meeting in Centre 1 before Christmas. So tread carefully, if you do try to hide any information and you say rent the property out or even sell it at a profit and do not declare income and gains to the Inland Revenue then you could have a problem. However, at the same time long term expats from the UK are not subject to capital gains taxes in the UK and even foreign income is irelevent for UK tax purposes. As the previous correspondent advised you may have some form of tax liability in the country that you buy.
Jul 6th 2007, 1:30 pm
#4
Senior Moment
Joined: Jan 2006
Location: On the edge
Posts: 20,460
Re: Declaring overseas property
Freedom of tax information between countries in Europe is now tightening up significantly under the guise of money laundering and anti terrorist legistlation. As a matter of interest the Inland Revenue have a department established in Spain, why I wonder ?
It is a fact to say that there is a two way flow of information between Spain and the UK, France and Germany, other countries are to follow. I know this because I was at an Inland Revenue meeting in Centre 1 before Christmas. So tread carefully, if you do try to hide any information and you say rent the property out or even sell it at a profit and do not declare income and gains to the Inland Revenue then you could have a problem. However, at the same time long term expats from the UK are not subject to capital gains taxes in the UK and even foreign income is irelevent for UK tax purposes. As the previous correspondent advised you may have some form of tax liability in the country that you buy.
It is a fact to say that there is a two way flow of information between Spain and the UK, France and Germany, other countries are to follow. I know this because I was at an Inland Revenue meeting in Centre 1 before Christmas. So tread carefully, if you do try to hide any information and you say rent the property out or even sell it at a profit and do not declare income and gains to the Inland Revenue then you could have a problem. However, at the same time long term expats from the UK are not subject to capital gains taxes in the UK and even foreign income is irelevent for UK tax purposes. As the previous correspondent advised you may have some form of tax liability in the country that you buy.
All very true, but bearing in mind that HMRC can't get their act together in their own country, it does stretch the imagination to believe they can do so in a foreign country.
Jul 7th 2007, 9:29 am
#5
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Joined: Apr 2007
Posts: 58
Re: Declaring overseas property
yes, like the client who we represent with his personal tax, when following submission of his libyan income and local libyan taxes paid HMRC decided to give him a tax rebate of £16,000. The mind boggles !!
