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Capital Gains - whose are worse: US or UK

Capital Gains - whose are worse: US or UK

Old Sep 28th 2007, 11:08 am
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Default 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
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Old Sep 28th 2007, 1:00 pm
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Default 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 ??????
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Old Sep 28th 2007, 1:08 pm
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Default Re: Capital Gains - whose are worse: US or UK

Originally Posted by franc11s View Post
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 ??????
Hold on: the way I understand it, the US will tax you on ALL the capital gains since the house was bought, whereas the UK will only tax you on the years when you did not live in it, and even then the first 3 years don't count.
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Old Sep 28th 2007, 1:40 pm
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Default 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.
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Old Sep 28th 2007, 3:00 pm
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Default Re: Capital Gains - whose are worse: US or UK

Originally Posted by Dan725 View Post
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.
Sounds very familiar....
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Old Sep 28th 2007, 3:04 pm
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Default Re: Capital Gains - whose are worse: US or UK

Originally Posted by Ray View Post
Sounds very familiar....
The records stuck.....seems to be the topic of the moment, this housing and capital gains!
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Old Sep 28th 2007, 3:08 pm
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Default Re: Capital Gains - whose are worse: US or UK

Originally Posted by Dan725 View Post
The records stuck.....seems to be the topic of the moment, this housing and capital gains!
My attitude is what there is there ..whats here is here
and never the twain will meet ...
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Old Sep 28th 2007, 3:30 pm
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Default Re: Capital Gains - whose are worse: US or UK

Originally Posted by Ray View Post
My attitude is what there is there ..whats here is here
and never the twain will meet ...
Likewise......but seems that's not what you are allowed to say in so many words on here!!
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Old Sep 28th 2007, 3:32 pm
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Default Re: Capital Gains - whose are worse: US or UK

Originally Posted by Dan725 View Post
Likewise......but seems that's not what you are allowed to say in so many words on here!!
Walls don't have just sausages apparently ....
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Old Sep 28th 2007, 4:30 pm
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Default Re: Capital Gains - whose are worse: US or UK

Originally Posted by franc11s View Post
you can't make money under a Clinton regime
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).
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