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US Home Ownership and UK implications

US Home Ownership and UK implications

Old Feb 2nd 2020, 5:17 pm
  #1  
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Default US Home Ownership and UK implications

Hey all,

I'm a UK citizen, US PR and we just bought a house. Curious to know whether I have any tax implications or if I need to even tell the UK about the purchase? My aunt apparently had some form of fine when she returned to the UK from Australia having owned a house out there - so wanted to see if anyone had some insight?

Thanks guys!
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Old Feb 2nd 2020, 6:07 pm
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Default Re: US Home Ownership and UK implications

No. You're a US tax resident. The home is in the US. I see no reason why the UK would give a hoot. I'm in the same situation.
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Old Feb 3rd 2020, 1:40 am
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Default Re: US Home Ownership and UK implications

Originally Posted by michaelr711 View Post
... My aunt apparently had some form of fine when she returned to the UK from Australia having owned a house out there - so wanted to see if anyone had some insight? ....
The UK doesn't have any necessary interest in British citizens owning property in other countries. Why don't you ask your aunt about the "apparent" fine?

The only issues that spring to mind regarding owning property overseas are either:

1) if your aunt had been renting out the property while subject to taxation in the UK, and failed to declare the rent, and as a result got assessed tax and a penalty, or

2) if your aunt owned the home in Australia when she returned to the UK and failed to disclose the home in Australia and therefore claimed the first/ only home rate of stamp tax, and then either the inflated stamp duty rate might be characterized as a "penalty". Or if she was found later to have (still) owned the home in Australia then there would likely have been a fine for evasion of the higher rate of stamp duty on a second home.

Last edited by Pulaski; Feb 3rd 2020 at 1:45 am.
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Old Feb 3rd 2020, 8:24 am
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Default Re: US Home Ownership and UK implications

Originally Posted by michaelr711 View Post
Hey all,

I'm a UK citizen, US PR and we just bought a house. Curious to know whether I have any tax implications or if I need to even tell the UK about the purchase? My aunt apparently had some form of fine when she returned to the UK from Australia having owned a house out there - so wanted to see if anyone had some insight?

Thanks guys!
Possible UK inheritance tax on your death. If this is a worry for you and your family you may want to buy additional life insurance to pay the tax.
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Old Feb 3rd 2020, 1:07 pm
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Default Re: US Home Ownership and UK implications

Originally Posted by Cook_County View Post
Possible UK inheritance tax on your death. If this is a worry for you and your family you may want to buy additional life insurance to pay the tax.
If you have moved to the US permanently and do not live in the UK at the time of death, there is no inheritance tax to pay in the UK on your estate, other than potentially (subject to the threshold level) on assets held in the UK.
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