Clareuk

Hi everyone
new user and came across this site by accident ( but very happy I have))
Okay, bit off background I am a UK citizen born and bred 🙂met and married a kiwi ( have dual citizenship ) and been away from UK for over 20 years.
Now separated 😟 I got half family home ( in settlement which will go towards a family home here.hopefully!
have only been back in the uk a month and feeling a little out of sorts currently staying with family till I get a job car etc.
tax wise say for arguments sake I got £100.000 from settlement what do I have to pay tax on?it was my family home only.
I am completely confused.
Hoping someone could perhaps shed some light for me.
savings currently still in NZ
sorry if this comes across dumb folks but wanted views and the family I’m staying with are elderly.

Thanks

christmasoompa

Hi, welcome to BE.

So you have proceeds from the sale of your house in NZ that you've brought in to the UK as savings? If so, no tax to pay from the UK size (no idea about the NZ side though). Will I be taxed on the savings I bring back?

HTH.

Clareuk

Thanks for your reply and for the link but i don't think that poster was a tax resident I am a tax resident tho here.
NZ was fine as I only got said money because of a separation so dont have any other tax to pay on it in NZ that Is.
i started hyperventilating as what I was reading was 40% tax to pay on £100.000 well that would leave me unable to afford anything here.
money is still in NZ and will only go towards the sale of a house here.

christmasoompa

They were coming back too, so would also have been tax resident. It doesn't matter though, you don't pay tax on your savings, only on your savings interest (if applicable and over the £1000 threshold).

brits1

[QUOTE=Clareuk;13068993]Hi everyone
new user and came across this site by accident ( but very happy I have))
Okay, bit off background I am a UK citizen born and bred 🙂met and married a kiwi ( have dual citizenship ) and been away from UK for over 20 years.
Now separated 😟 I got half family home ( in settlement which will go towards a family home here.hopefully!
have only been back in the uk a month and feeling a little out of sorts currently staying with family till I get a job car etc.
tax wise say for arguments sake I got £100.000 from settlement what do I have to pay tax on?it was my family home only.
I am completely confused.
Hoping someone could perhaps shed some light for me.
savings currently still in NZ
sorry if this comes across dumb folks but wanted views and the family I’m staying with are elderly.

Thanks[/QUOT
Hi I felt the same way as you when I first returned to the UK, We stayed with my dad and was made to feel very welcome but I did not feel really settled until we had a place of our own (a rental at first), a car, work and the our sons started college and uni…..I just wanted to “feel” in a routine again….this all happened though within a few months and everything else fell into place so give yourself some time, we did not pay tax on money we transferred from Australia which included savings and money made from our house sale. Good luck and hope all works out for you.

Clareuk

Thanks for the info and kind words and nice to have people who understand the out of sorts feeling as well.

I actually phoned the HMRC to get more info as I was reading conflicting info and they were saying possibly 10% and that was after explaining it was a family home in NZ to put towards another home here in the UK.
I feel so confused as I don’t want to be lugged with a massive tax bill but need to find out the work around I feel very confused. Im so grateful to this site 💖
will keep you informed and if anyone has any ideas on this I’m completely open to it.
just want to start again and live.
Thanks again .

durham_lad

Were you resident in the UK when the house was sold in NZ?

If no, then definitely no tax to pay at all in the UK.

If yes, then it is still possible you will get some tax relief if you lived in it for all or most of the time and it happened to be overseas but I'm not sure at all on this point. Remember that any tax due will be on the capital gain of the house, not the amount you received on the sale. e.g. the house cost £150,000 to buy and you sold it for £200,000. That is a total gain of £50,000 from which you can deduct all selling expenses plus any capital improvement costs you had while you owned the house. As joint owner you will have received £100,000 from the sale and the capital gain before deducting expenses is £25,000.

https://www.gov.uk/tax-sell-home

https://www.which.co.uk/money/tax/ca...00f#headline_7

Clareuk

Thanks durham_lad and all of you that have commented - appreciate your time.

i have lived away from the uk over 25 years (left as a young adult of only 20!) so although I have a NI number etc I haven’t been here in the uk living for more that two decades and had to update my NI when I got here.

The house was sold to my ex ( he could afford to buy me out I couldn’t afford to do the same) this was before I came to the uk. It Was the family home and I only owned ( along with the bank) that one property.

fingers and toes crossed it’s as we think and as it was the family home nothing to pay.

Goodness, I could really do with some luck it’s been a very traumatic year 😩

Thanks again 🙂

durham_lad

Since it was sold before you moved I'm certain that there is no HMRC tax due on the sale. We sold our house before moving back to England from the USA. Also there are no tax implications in moving your money from NZ to the UK. You will probably be wanting to move it as a large transaction, which is what we did in 2016 to buy our house in England. You should let your bank in the UK know ahead of time as there will be questions about the transfer to confirm this is not money laundering. In our case it was a simple phone call and the bank rep was satisfied when I told him it was the proceeds of a house sale. We did not have to prove anything, but be prepared to have some proof available just in case.

marigoldfairy

hmm we are planning to sell our house once we vacate NZ….I didn’t realise that we’d have to pay tax if we were in the UK when it sold!

durham_lad

I'd check ahead first, it may be that since it is your primary home and the sale doesn't happen before you move and buy a new house you may be okay. I Googled and looked and couldn't see a definitive article on that situation so it may be worth a call to HMRC beforehand because if it is treated as the sale of a foreign property you may well be liable for cap gains tax. Note that purchase price and sale price will have to be calculated on the exchange rate on the respective days so swings in the exchange rate could make a big difference, good or bad.

Clareuk

Thanks all 🙂