u644362

I know this topic has been discussed i the past but I couldn't find specifics related to our situation so am hoping someone can help.

We have been in the US for almost 3 years in rented accommodation and now want to sell our UK home to buy here. If we do not complete on a sale by June 13 (the date we left the UK) will we be subject to CGT and if so at what rate, and on what gain? i.e. will it be the gain since purchase or the gain since we left? Also what allowances are there - can we deduct capital expenditure from the gain?

MsElui

have you made a large gain on the property value ? because if there is no large gain - you have less to worry about. We bought our uk home in 2001 and whilst it has gone up in price - the estimated 'gain' isnt huge because of the housing market being so depressed so we decided to leave the house alone for the time being.

also - and i am NOT at all sure about this - but if you are still renting here - can you still class the uk home as main residence?

u644362

The gain is not large probably about 30,000 GBP, but we need all the money we can get to be able to afford a home over here.

TimNiceBut

Check with a competent CPA, but I think it's the gain since purchase, less repairs and cost of upkeep etc.

dunroving

I just found this while searching for information related to another post:

http://en.wikipedia.org/wiki/Capital..._United_States

- clear as mud.

One difference seems to be that in the UK, you get an allowance of £10k capital gain before you are taxed, whereas there is no "allowance" in the US (as far as I can tell, it's all too confusing for me).

Pistolpete2

Please reiterate!

This is a US tax question or UK tax question, or both, in spite of the heading?

u644362

Sorry- I want to know the position on the US tax liability for CGT

Pistolpete2

Was this the piece you had seen before on a thread?

http://www.thinkglink.com/article/20...n-in-home-sale

u644362

It was yes.