joannakeohane

Hi - we live in NYC and are considering selling a property in the UK. We have a greencard and I want to know what is required regarding capital gains tax. Do we pay in the UK - or do we pay in NYC as we live here. If so does anyone know the rate and/or any ways to to minimize the payment? Many thanks in advance.

SarahG

I found these links online. They may be of use to you. We recently sold our UK property and are consulting with a tax specialist in a day or so.

https://ttlc.intuit.com/questions/22...f-the-property

https://www.irs.gov/Individuals/Inte...ign-Tax-Credit

Cook_County

Firstly the UK on gains from April 2015. Secondly the US. Thirdly on foreign currency gain on repaying the mortgage. Fourthly to NYS/NYC.

jimakos

Are you sure its from April 2015? I think you might have to declare the sale within 30 days and pay taxes owed upfront.

Pulaski

The rules changed at that time but (i) gains prior to that time are not assessed for tax in the UK when the owner is not tax-resident in the UK, AND (ii) the last 18 months of ownership is exempt, so for most people no CGT will be assessed by HMRC until sales in/after October 2016.

jimakos

Agreed. I did some research on this myself (and called HMRC).
- No CGT prior to April 2015. It is up to the filer to determine how to calculate the taxes.
a) Either figure out value of property on April 2015 and calculate the gain on sale date. OR
b) Linearly figure out the gain based on duration owned vs duration from April 2015.

- In addition the 18 month exemption (I believe) can only be applied if you have NOT rented out the property (for non-residents).

I am in a similar situation. I have to figure out the gains of my flat from April 2015 without any exemptions because I rented it out.

I'd love to be proven wrong

Pulaski

Unless something has changed, it is customary under HMRC rules to calculate capital gains on a linear basis between the date of purchase and the date of sale, then apportion it over time, in other words, interim valuations are ignored. ...... Otherwise people would pick a value to reduce their tax liability, in this case they would try to argue that the sales price = the value in April 2015.

jimakos

This is what the HMRC directed me to.
https://www.gov.uk/guidance/capital-...e-gain-or-loss

I was referring to Rebasing on April 2015. There is a "Valuations" section that explains how you can do it "properly"