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UK house sale and taxation

UK house sale and taxation

Old Sep 10th 2007, 8:25 am
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Default 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.
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Old Sep 10th 2007, 8:28 am
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Default Re: UK house sale and taxation

Originally Posted by TRPardoe
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.
What money !!!!!!
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Old Sep 10th 2007, 8:34 am
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Default Re: UK house sale and taxation

Originally Posted by Ray
What money !!!!!!
Difficult to value. It is a small 2 bed cottage on a hillside in North Staffordshire with a very large terraced garden and detached large garage. The garden is very unkempt now.

Perhaps £300,000 - perhaps £200,000 - who knows ?
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Old Sep 10th 2007, 8:35 am
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Default Re: UK house sale and taxation

Originally Posted by TRPardoe
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.
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!

Last edited by farmerwife; Sep 10th 2007 at 8:37 am. Reason: sp.
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Old Sep 10th 2007, 8:36 am
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Default Re: UK house sale and taxation

Originally Posted by Ray
What money !!!!!!
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!!!
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Old Sep 10th 2007, 8:40 am
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Default Re: UK house sale and taxation

Originally Posted by farmerwife
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!
So far as I recall no valuation was done at the time. It was a Deed of Gift.
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Old Sep 10th 2007, 8:42 am
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Default Re: UK house sale and taxation

Originally Posted by sunflwrgrl13
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!!!
That won't work.

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.
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Old Sep 10th 2007, 8:43 am
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Default Re: UK house sale and taxation

Originally Posted by TRPardoe
That won't work.

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.
Damn..didn't know that...
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Old Sep 10th 2007, 8:43 am
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Default Re: UK house sale and taxation

Originally Posted by sunflwrgrl13
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!!!
You forgot...hope the IRS don't catch up with you.


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.
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Old Sep 10th 2007, 8:50 am
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Default Re: UK house sale and taxation

Originally Posted by sunflwrgrl13
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!!!
Also wouldn't be smart because ..... UK CGT is a lot higher than USA CGT.
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Old Sep 10th 2007, 8:52 am
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Default Re: UK house sale and taxation

Originally Posted by farmerwife
Also wouldn't be smart because ..... UK CGT is a lot higher than USA CGT.
I was wondering, it being my sole UK residence which I could not sell as my Mother lived there, whether I could bring the lot over tax free as I would if I was emigrating here.
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Old Sep 10th 2007, 8:52 am
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Default Re: UK house sale and taxation

Originally Posted by TRPardoe
So far as I recall no valuation was done at the time. It was a Deed of Gift.
There has to be some kind of valuation at the date when it was gifted to you
That would be your basis from which your gain would be calculated.
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Old Sep 10th 2007, 8:53 am
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Default Re: UK house sale and taxation

Originally Posted by farmerwife
There has to be some kind of valuation at the date when it was gifted to you
That would be your basis from which your gain would be calculated.
I suppose it could be on the Land Registry. I have the download at home. I'll have to have another look.
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Old Sep 10th 2007, 8:55 am
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Default Re: UK house sale and taxation

Originally Posted by TRPardoe
I was wondering, it being my sole UK residence which I could not sell as my Mother lived there, whether I could bring the lot over tax free as I would if I was emigrating here.
I seem to remember there is a time line...something like 3 yrs after you've moved here.

I think you'd be best asking a qualified accountant who specializes in International Taxation.
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Old Sep 10th 2007, 8:56 am
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Default Re: UK house sale and taxation

Originally Posted by TRPardoe
I was wondering, it being my sole UK residence which I could not sell as my Mother lived there, whether I could bring the lot over tax free as I would if I was emigrating here.
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.
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