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Are UK House Sale proceeds taxable??

Are UK House Sale proceeds taxable??

Old Apr 5th 2008, 5:39 am
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Default Are UK House Sale proceeds taxable??

I have been talking with a couple of friends of mine who are considering selling up the property they still have in the UK and using the sale proceeds to purchase what will become their non-Dubai residence in Turkey....

One of them had been advised by 'someone' that, if he were to sell his sole UK property and transfer the proceeds to Turkey NOW, he would not be taxed but, if he were to leave it for 6 months (I think this is the timescale he was told), that HMRC are bringing out a tax on house sale proceeds being moved outwith the UK...


Can anyone let me know if they have heard of this, or something akin to it?

Thanks.......
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Old Apr 5th 2008, 7:00 am
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Default Re: Are UK House Sale proceeds taxable??

Meow or Norm should know the answer to this
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Old Apr 5th 2008, 9:42 am
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Default Re: Are UK House Sale proceeds taxable??

If they are still living in the UK in the house in question then it is their principle residence and so no CGT is applicable. If they are not living in that house and they are renting it then they will pay CGT indexed to the start of the rental period. If they are just not living there then I don't know.

But in answer to your question no I have not heard of this - but there are limits to the amount of money you can take outside of the EEC without declaring it to Customs - ten thousand euro eqvt at present. And Turkey is unlikely to get into the EC within the next six months. Nor the Eurovision song contest nor anything else if the chief prosecutor manages to ban the government ruling party!
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Old Apr 6th 2008, 5:37 am
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Default Re: Are UK House Sale proceeds taxable??

Old Lob is correct regarding the property sale.

As for moving money out of the UK, I have never heard of anyone having a problem with this. You just move it initially to an offshore account and unless it is a very large sum, it is unlikely to be a problem.

Last edited by Meow; Apr 6th 2008 at 5:44 am.
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Old Apr 6th 2008, 2:41 pm
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Default Re: Are UK House Sale proceeds taxable??

OK - I have a more complicated question on this subject. If your former sole UK residence is now rented, and you have bought additional properties in the UK since becoming a UK non-resident, are all, or any liable for capital gains tax on the proceeds of their eventual sale? Also, what constitutes a large sum? Greater than 5 figures/6 figures?
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Old Apr 6th 2008, 3:17 pm
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Default Re: Are UK House Sale proceeds taxable??

Weescot

You are liable to CGT profit from the sale of properties that are not your main residence if a UK resident.

Generally expats who become not resident or no ordinarily resident on or after 17th March 1998 will remain within the scope of CGT unless they are neither resident nor ordinarily resident for at least five complete tax years.

This rule will not apply to individuals unless they have been resident or ordinarily resident in the UK for at least four out of seven years prior to the date of departure.

Hope this helps.
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Old Apr 6th 2008, 3:28 pm
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Default Re: Are UK House Sale proceeds taxable??

Many thanks for clarifying Meow. Very helpful. I have been a UK non-resident since 2003 and have no immediate plans to sell or return to UK.
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Old Apr 7th 2008, 4:13 am
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Default Re: Are UK House Sale proceeds taxable??

Originally Posted by weescot View Post
Many thanks for clarifying Meow. Very helpful. I have been a UK non-resident since 2003 and have no immediate plans to sell or return to UK.
So why ask then - or are you setting clandestine tax exams?

I have a tax free geosynchronous satellite which stays above my tent in the desert which is my second home, the first being broadmoor. I do not intend ever to sell it but have a rare blood group which came in handy for funding my studies in the USA. If Chelsea Clinton becomes the President of Venezuela then will I be taxed if I, before 31 Feb 1712, convert said tent into a blood transfusion centre? Will the indexation be on the Brady Bond or could I apply for dispensation to relate it to iodine concentration of the Iguassa Falls? Are there any factors which may invalidate the tax exemption based on proximity to my satellite? Can I declare ownership of the entire universe without incurring a larege tax bill?
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Old Apr 7th 2008, 5:49 am
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Default Re: Are UK House Sale proceeds taxable??

Originally Posted by Old Lob View Post
So why ask then - or are you setting clandestine tax exams?
No. My circumstances may change at any time. Sorry to have taken up your time.
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