UK house sale and taxation
#1
UK house sale and taxation
Have done a couple of US forum searches and not found the answer:
It is likely that later this year I shall be selling my house in the UK. It was gifted to me 9 years ago and my Mother has been living there and paying the bills ever since. Now it looks like she will be going into a nursing home for good.
If it remains empty I shall be liable for Poll tax, heat etc. etc. which I cannot afford. The house would need a lot of work to be rentable.
If it is sold, does anyone know the tax implications both in the UK and the USA ?
I am now, officially, a non-taxpayer in the UK.
It is likely that later this year I shall be selling my house in the UK. It was gifted to me 9 years ago and my Mother has been living there and paying the bills ever since. Now it looks like she will be going into a nursing home for good.
If it remains empty I shall be liable for Poll tax, heat etc. etc. which I cannot afford. The house would need a lot of work to be rentable.
If it is sold, does anyone know the tax implications both in the UK and the USA ?
I am now, officially, a non-taxpayer in the UK.
#2
Re: UK house sale and taxation
Have done a couple of US forum searches and not found the answer:
It is likely that later this year I shall be selling my house in the UK. It was gifted to me 9 years ago and my Mother has been living there and paying the bills ever since. Now it looks like she will be going into a nursing home for good.
If it remains empty I shall be liable for Poll tax, heat etc. etc. which I cannot afford. The house would need a lot of work to be rentable.
If it is sold, does anyone know the tax implications both in the UK and the USA ?
I am now, officially, a non-taxpayer in the UK.
It is likely that later this year I shall be selling my house in the UK. It was gifted to me 9 years ago and my Mother has been living there and paying the bills ever since. Now it looks like she will be going into a nursing home for good.
If it remains empty I shall be liable for Poll tax, heat etc. etc. which I cannot afford. The house would need a lot of work to be rentable.
If it is sold, does anyone know the tax implications both in the UK and the USA ?
I am now, officially, a non-taxpayer in the UK.
#4
BE Enthusiast
Joined: Nov 2006
Location: Oregon
Posts: 612
Re: UK house sale and taxation
Have done a couple of US forum searches and not found the answer:
It is likely that later this year I shall be selling my house in the UK. It was gifted to me 9 years ago and my Mother has been living there and paying the bills ever since. Now it looks like she will be going into a nursing home for good.
If it remains empty I shall be liable for Poll tax, heat etc. etc. which I cannot afford. The house would need a lot of work to be rentable.
If it is sold, does anyone know the tax implications both in the UK and the USA ?
I am now, officially, a non-taxpayer in the UK.
It is likely that later this year I shall be selling my house in the UK. It was gifted to me 9 years ago and my Mother has been living there and paying the bills ever since. Now it looks like she will be going into a nursing home for good.
If it remains empty I shall be liable for Poll tax, heat etc. etc. which I cannot afford. The house would need a lot of work to be rentable.
If it is sold, does anyone know the tax implications both in the UK and the USA ?
I am now, officially, a non-taxpayer in the UK.
I don't think you would be liable for UK tax (because of the UK/USA dual tax treaty agreement thingy).
I am not a CPA - standard advice - good idea to consult one anyway!
Last edited by farmerwife; Sep 10th 2007 at 8:37 pm. Reason: sp.
#5
Re: UK house sale and taxation
i'm no tax expert, but i'd say do this:
1) sell your house
2) deposit monies into a UK checking acct.
3) Pay any applicable taxes to UK gov't
4) Using your switch (or debit) card, remove cash from your UK acct here in the US
5) Using this cash, go get a money order to pay any bills. Doing this ensures there is no paper-trail (no unexplainable deposits into your US checking acct if you get audited by the IRS).
6) Reap the rewards of having gotten one past the US gov't!!!
1) sell your house
2) deposit monies into a UK checking acct.
3) Pay any applicable taxes to UK gov't
4) Using your switch (or debit) card, remove cash from your UK acct here in the US
5) Using this cash, go get a money order to pay any bills. Doing this ensures there is no paper-trail (no unexplainable deposits into your US checking acct if you get audited by the IRS).
6) Reap the rewards of having gotten one past the US gov't!!!
#6
Re: UK house sale and taxation
AFAIK if the house is sold you would be liable for US capital gains tax on your gain (from what it was valued at when it was gifted to you). If it was a PET gift an official valuation should have been done?
I don't think you would be liable for UK tax (because of the UK/USA dual tax treaty agreement thingy).
I am not a CPA - standard advice - good idea to consult one anyway!
I don't think you would be liable for UK tax (because of the UK/USA dual tax treaty agreement thingy).
I am not a CPA - standard advice - good idea to consult one anyway!
#7
Re: UK house sale and taxation
i'm no tax expert, but i'd say do this:
1) sell your house
2) deposit monies into a UK checking acct.
3) Pay any applicable taxes to UK gov't
4) Using your switch (or debit) card, remove cash from your UK acct here in the US
5) Using this cash, go get a money order to pay any bills. Doing this ensures there is no paper-trail (no unexplainable deposits into your US checking acct if you get audited by the IRS).
6) Reap the rewards of having gotten one past the US gov't!!!
1) sell your house
2) deposit monies into a UK checking acct.
3) Pay any applicable taxes to UK gov't
4) Using your switch (or debit) card, remove cash from your UK acct here in the US
5) Using this cash, go get a money order to pay any bills. Doing this ensures there is no paper-trail (no unexplainable deposits into your US checking acct if you get audited by the IRS).
6) Reap the rewards of having gotten one past the US gov't!!!
You have to declare to the IRS any foreign account with more than $10,000 in it.
My only UK account is a Portman BS account which has no Debit Card.
#9
Re: UK house sale and taxation
i'm no tax expert, but i'd say do this:
1) sell your house
2) deposit monies into a UK checking acct.
3) Pay any applicable taxes to UK gov't
4) Using your switch (or debit) card, remove cash from your UK acct here in the US
5) Using this cash, go get a money order to pay any bills. Doing this ensures there is no paper-trail (no unexplainable deposits into your US checking acct if you get audited by the IRS).
6) Reap the rewards of having gotten one past the US gov't!!!
1) sell your house
2) deposit monies into a UK checking acct.
3) Pay any applicable taxes to UK gov't
4) Using your switch (or debit) card, remove cash from your UK acct here in the US
5) Using this cash, go get a money order to pay any bills. Doing this ensures there is no paper-trail (no unexplainable deposits into your US checking acct if you get audited by the IRS).
6) Reap the rewards of having gotten one past the US gov't!!!
If it was me I'd report the sale to the IRS. You're required to declare any foreign bank account containing $10K or more.
#10
BE Enthusiast
Joined: Nov 2006
Location: Oregon
Posts: 612
Re: UK house sale and taxation
i'm no tax expert, but i'd say do this:
1) sell your house
2) deposit monies into a UK checking acct.
3) Pay any applicable taxes to UK gov't
4) Using your switch (or debit) card, remove cash from your UK acct here in the US
5) Using this cash, go get a money order to pay any bills. Doing this ensures there is no paper-trail (no unexplainable deposits into your US checking acct if you get audited by the IRS).
6) Reap the rewards of having gotten one past the US gov't!!!
1) sell your house
2) deposit monies into a UK checking acct.
3) Pay any applicable taxes to UK gov't
4) Using your switch (or debit) card, remove cash from your UK acct here in the US
5) Using this cash, go get a money order to pay any bills. Doing this ensures there is no paper-trail (no unexplainable deposits into your US checking acct if you get audited by the IRS).
6) Reap the rewards of having gotten one past the US gov't!!!
#14
Re: UK house sale and taxation
I think you'd be best asking a qualified accountant who specializes in International Taxation.
#15
BE Enthusiast
Joined: Nov 2006
Location: Oregon
Posts: 612
Re: UK house sale and taxation
Well .... did you ever reside in it as your single family residence? It wouldn't count as your residence if actually wasn't; that is you actually were living somewhere else - the USA for instance.