Property Valuation
Jul 15th 2019, 4:04 pm
#1
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Thread Starter
Joined: Jul 2019
Posts: 2
Property Valuation
Is it possible to declare the valuation of property owned overseas upon return to the UK so that capital gains are only upon the increase in value after returning to the UK?
Does this rule actually apply?
I appreciate any tips.
Does this rule actually apply?
I appreciate any tips.
Jul 17th 2019, 10:39 am
#2
BE Forum Addict
Joined: Apr 2009
Location: Scotland & Touraine [37]
Posts: 3,018
Re: Property Valuation
You need to look at the Treaty arrangements between your current country and the UK.
If you are a UK tax resident and you sell a second home overseas then you need to declare the gain to HMRC.
If there is a double taxation treaty between the two countries then the tax paid in the 1st country will be deducted before UK tax so that you are not taxed twice.
If the home is jointly owned then you benefit from 2 tax-free allowances of £11,700 = £23,400 before tax is charged.
Where you can get caught is in the exchange rate i.e. how many £s you paid for the house and how many £s you sold it for.
If the house is your main or only residence then there is no tax to pay in the UK.
HTH
Jul 17th 2019, 10:47 am
#3
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Property Valuation
I would not have thought so. I don't see why the capital gain from the sale of a property will not be taxable just because it has been owned more than 10 years. I could easily be wrong. If it is your primary home and you sell it shortly after you returned to the UK then I would think that no tax would be due.
I know that the US/UK tax treaty does not work the way you suggest.
