Go Back  British Expats > Living & Moving Abroad > Moving back or to the UK
Reload this Page >

UK house sale and taxation

UK house sale and taxation

Old Sep 10th 2007, 9:21 pm
  #16  
Ray
 
Ray's Avatar
 
Joined: Mar 2003
Posts: 68,280
Ray has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond repute
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.
And Im sure some people do....
Ray is offline  
Old Sep 10th 2007, 10:41 pm
  #17  
Gone but not forgotten. RIP
Thread Starter
 
TRPardoe's Avatar
 
Joined: Apr 2001
Posts: 1,570
TRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond repute
Default Re: UK house sale and taxation

Originally Posted by farmerwife
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.
I lived in it when I was in the UK. It was too difficult to move my Fort Myers palace over there for the odd week ;-)
TRPardoe is offline  
Old Sep 11th 2007, 1:24 am
  #18  
BE Enthusiast
 
Joined: Nov 2006
Location: Oregon
Posts: 612
farmerwife is a splendid one to beholdfarmerwife is a splendid one to beholdfarmerwife is a splendid one to beholdfarmerwife is a splendid one to beholdfarmerwife is a splendid one to beholdfarmerwife is a splendid one to beholdfarmerwife is a splendid one to beholdfarmerwife is a splendid one to beholdfarmerwife is a splendid one to beholdfarmerwife is a splendid one to beholdfarmerwife is a splendid one to behold
Default Re: UK house sale and taxation

Originally Posted by TRPardoe
I lived in it when I was in the UK. It was too difficult to move my Fort Myers palace over there for the odd week ;-)
Depends when that was..... It looks like the IRS "two years out of the last five" rule will apply. Read up here for a short summary.

http://www.aarp.org/money/taxaide/ta..._faqs_py?faq=8
farmerwife is offline  
Old Sep 11th 2007, 1:36 am
  #19  
.
 
Yorkieabroad's Avatar
 
Joined: Nov 2002
Location: Where bad things rarely happen in movies
Posts: 8,933
Yorkieabroad has a reputation beyond reputeYorkieabroad has a reputation beyond reputeYorkieabroad has a reputation beyond reputeYorkieabroad has a reputation beyond reputeYorkieabroad has a reputation beyond reputeYorkieabroad has a reputation beyond reputeYorkieabroad has a reputation beyond reputeYorkieabroad has a reputation beyond reputeYorkieabroad has a reputation beyond reputeYorkieabroad has a reputation beyond reputeYorkieabroad has a reputation beyond repute
Default Re: UK house sale and taxation

If you're non-resident in the UK for tax purposes, and you've been out of the country for more than 5 (I think) years you wont have a CGT liability in the UK. But as someone else said, check with a tax expert...
Yorkieabroad is offline  
Old Sep 13th 2007, 1:52 am
  #20  
Account Closed
 
Joined: Aug 2004
Posts: 22,220
Rushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really nice
Default Re: UK house sale and taxation

Originally Posted by TRPardoe
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 ?
I'll give you 125K for it.


Cash.
Rushman is offline  
Old Sep 13th 2007, 1:56 am
  #21  
Account Closed
 
Joined: Aug 2004
Posts: 22,220
Rushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really nice
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.
Originally Posted by Jerseygirl
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.
Just how are the US IRS going to find out you have over $10K in a UK bank? Serious question.
Rushman is offline  
Old Sep 13th 2007, 2:11 am
  #22  
SUPER MODERATOR
 
Jerseygirl's Avatar
 
Joined: Dec 2005
Posts: 88,015
Jerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond repute
Default Re: UK house sale and taxation

Originally Posted by Rushman
Just how are the US IRS going to find out you have over $10K in a UK bank? Serious question.
I know what your saying. To us it's not worth taking the chance...we have a good standard of living and don't mind paying what we owe.
Jerseygirl is offline  
Old Sep 13th 2007, 4:27 am
  #23  
Account Closed
 
Joined: Aug 2004
Posts: 22,220
Rushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really nice
Default Re: UK house sale and taxation

Originally Posted by Jerseygirl
I know what your saying. To us it's not worth taking the chance...we have a good standard of living and don't mind paying what we owe.
I dont mind paying what I owe.....on what ive earned here but I think the IRS and the US government have got a right nerve wanting to get their mits on dosh I earned before I moved here.
Rushman is offline  
Old Sep 13th 2007, 12:45 pm
  #24  
Gone but not forgotten. RIP
Thread Starter
 
TRPardoe's Avatar
 
Joined: Apr 2001
Posts: 1,570
TRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond repute
Default Re: UK house sale and taxation

Originally Posted by Rushman
Just how are the US IRS going to find out you have over $10K in a UK bank? Serious question.
I have no idea if they could find out. Probably not, in reality. However if they did find out, such as during an audit, your ass would be grass.
TRPardoe is offline  
Old Sep 13th 2007, 12:58 pm
  #25  
BE Forum Addict
 
Dan725's Avatar
 
Joined: Aug 2004
Location: Tampa, FL
Posts: 3,338
Dan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond repute
Default Re: UK house sale and taxation

Even if the IRS did know how much you had in your UK account (which unless you have a reputation like Al Capone, they won't be interested in this poxy amount) - who is to say where that money came from?

Even though all transfers over $10k are reported to the IRS, it doesnt mean you are liable to pay tax on it. You are liable on the interest the money makes....but who's to say how much interest you were earning in the UK......

Basically, I reckon sell the house and pay no tax to anyone.
Dan725 is offline  
Old Sep 13th 2007, 3:11 pm
  #26  
Gone but not forgotten. RIP
Thread Starter
 
TRPardoe's Avatar
 
Joined: Apr 2001
Posts: 1,570
TRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond reputeTRPardoe has a reputation beyond repute
Default Re: UK house sale and taxation

Originally Posted by Dan725
Even if the IRS did know how much you had in your UK account (which unless you have a reputation like Al Capone, they won't be interested in this poxy amount) - who is to say where that money came from?

Even though all transfers over $10k are reported to the IRS, it doesnt mean you are liable to pay tax on it. You are liable on the interest the money makes....but who's to say how much interest you were earning in the UK......

Basically, I reckon sell the house and pay no tax to anyone.
I'll let everyone know what my UK Estate Agent and my US accountant say when the time comes.
TRPardoe is offline  
Old Sep 13th 2007, 8:56 pm
  #27  
L2, GC, Surrey, OH, TX!
 
MsElui's Avatar
 
Joined: Aug 2007
Location: Surrey to Dallas (via Ohio)!
Posts: 6,363
MsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond repute
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.
if you own a 'main residence' house in the us - then you cant have another in the uk.
MsElui is offline  
Old Sep 14th 2007, 12:38 am
  #28  
BE Forum Addict
 
Dan725's Avatar
 
Joined: Aug 2004
Location: Tampa, FL
Posts: 3,338
Dan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond reputeDan725 has a reputation beyond repute
Default Re: UK house sale and taxation

Originally Posted by MsElui
if you own a 'main residence' house in the us - then you cant have another in the uk.
Says bloody who - If you had one before you moved here I don't see how its their business
Dan725 is offline  
Old Sep 14th 2007, 1:11 am
  #29  
SUPER MODERATOR
 
Jerseygirl's Avatar
 
Joined: Dec 2005
Posts: 88,015
Jerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond repute
Default Re: UK house sale and taxation

Originally Posted by Dan725
Says bloody who - If you had one before you moved here I don't see how its their business
Your main residence is in the country you are resident in.
Jerseygirl is offline  
Old Sep 14th 2007, 12:14 pm
  #30  
L2, GC, Surrey, OH, TX!
 
MsElui's Avatar
 
Joined: Aug 2007
Location: Surrey to Dallas (via Ohio)!
Posts: 6,363
MsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond reputeMsElui has a reputation beyond repute
Default Re: UK house sale and taxation

Originally Posted by Jerseygirl
Your main residence is in the country you are resident in.
mortgage interest is not netted against rental income (from the uk propert) - it can be offset against US taxable income. We have an interest only mortgage in the UK so thats a large amount of relief we can claim.

the american tax consultant told us if we rented in the US - we could claim our UK owned home was our 'main residence' and thus claim the large mortgage relief on that property as an offset againt our US taxable income (so very very very worth doing financially).

If we subsequently bought a home in the US (or became green card holders/would not be returning to the UK) - the US would have to become our main residence and any mortgage interest calculation would be worked out on the us property and not a UK one. We can still own the uk home - but the tax treatment is different if its not your main - only one property at a time can be a main residence for the tax purposes. sure - you can try and hide the uk home from the irs - BUT then you would have to forgoe the potential tax relief it might bring you.

also remember that if you pay off a foreign mortgage whilst in the US (ie sell a uk home) - you can be taxed on the exchange rate difference if there is an exchange rate gain (your tough luck if there is an exchange rate loss).
MsElui is offline  

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.