Capital Gains - whose are worse: US or UK
Sep 28th 2007, 11:08 am
#1
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Thread Starter
Joined: Aug 2007
Posts: 4
Capital Gains - whose are worse: US or UK
I own a house in Brighton, England which will be rented out over the next 5-6 years while we live in the US. I will have the choice to either sell this while I am in the US (And pay cap gains in the US but not the UK) or return and sell it in the UK (pay cap gains the other way around). Whose taxes are worse?
Thank you,
-Scott
Thank you,
-Scott
Sep 28th 2007, 1:00 pm
#2
Pass me the Marmite..
Joined: Feb 2004
Location: Atlanta, GA.
Posts: 864
Re: Capital Gains - whose are worse: US or UK
If you are a citizen, you don't have a lot of choice, I think.
If you live in a state with no state tax, that would help a lot but you are still much better off with US Capital Gains (unless we see Hilary get in, and then I think you'll be screwed because you can't make money under a CLinton regime
).
I'd also say, it's worth talking to an accountant that understands both so you can offset your "house" costs etc., to reduce the CG. Run the stats in a spreadsheet. 5 years ago, and I think it's still the same, it's significantly less tax in the US *but* it might depend too on how much gain you have $000's or 100's of $000's... of course you have the timing on a wondering $/sterling rate - lol at 2.03 today !!
On EDIT - thinking this through, do you pay CG on UK property ??????
If you live in a state with no state tax, that would help a lot but you are still much better off with US Capital Gains (unless we see Hilary get in, and then I think you'll be screwed because you can't make money under a CLinton regime
).I'd also say, it's worth talking to an accountant that understands both so you can offset your "house" costs etc., to reduce the CG. Run the stats in a spreadsheet. 5 years ago, and I think it's still the same, it's significantly less tax in the US *but* it might depend too on how much gain you have $000's or 100's of $000's... of course you have the timing on a wondering $/sterling rate - lol at 2.03 today !!
On EDIT - thinking this through, do you pay CG on UK property ??????
Sep 28th 2007, 1:08 pm
#3
Homebody
Joined: Jan 2005
Location: HOME
Posts: 23,179
Re: Capital Gains - whose are worse: US or UK
If you are a citizen, you don't have a lot of choice, I think.
If you live in a state with no state tax, that would help a lot but you are still much better off with US Capital Gains (unless we see Hilary get in, and then I think you'll be screwed because you can't make money under a CLinton regime ).
I'd also say, it's worth talking to an accountant that understands both so you can offset your "house" costs etc., to reduce the CG. Run the stats in a spreadsheet. 5 years ago, and I think it's still the same, it's significantly less tax in the US *but* it might depend too on how much gain you have $000's or 100's of $000's... of course you have the timing on a wondering $/sterling rate - lol at 2.03 today !!
On EDIT - thinking this through, do you pay CG on UK property ??????
If you live in a state with no state tax, that would help a lot but you are still much better off with US Capital Gains (unless we see Hilary get in, and then I think you'll be screwed because you can't make money under a CLinton regime
).I'd also say, it's worth talking to an accountant that understands both so you can offset your "house" costs etc., to reduce the CG. Run the stats in a spreadsheet. 5 years ago, and I think it's still the same, it's significantly less tax in the US *but* it might depend too on how much gain you have $000's or 100's of $000's... of course you have the timing on a wondering $/sterling rate - lol at 2.03 today !!
On EDIT - thinking this through, do you pay CG on UK property ??????
Sep 28th 2007, 1:40 pm
#4
BE Forum Addict
Joined: Aug 2004
Location: Tampa, FL
Posts: 3,338
Re: Capital Gains - whose are worse: US or UK
Is it your primary residence now? If so put it on the market, sell it, collect proceeds, move to US, buy new house. No gains tax to pay either side.
Sep 28th 2007, 4:30 pm
#10
And YOU'RE paying for it!
Joined: May 2007
Location: kipper tie?
Posts: 2,328
Re: Capital Gains - whose are worse: US or UK
Past performance is no guarantee of future results but ... 1980s recession was under Reagan/Bush, 1990s dot com and IT boom was under Clinton, the IT bust and present housing bust was under Bush.
Mind you, it's arguable whether any of them actually played a significant role in the economy (apart from Reagan).
Mind you, it's arguable whether any of them actually played a significant role in the economy (apart from Reagan).
