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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15707
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I would like to know if I need to pay tax on an agriculture

Customer Question

Hi
JA: Hi. What do you want help with?
Customer: I would like to know if I need to pay tax on an agriculture property that was given to me by my father and brothers in 1975.This has now been acquired by the Government who paid for it in May this year. Now I would like to bring in the money in UK (it is sitting in my account opned in April in Pakistan) I am UK national since 1995
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: not at the moment
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.
Submitted: 5 months ago.
Category: UK Tax
Customer: replied 5 months ago.
The Property was in my name and brothers names and my mothers name when bought in 1975 then in 1998 after the demise of my mother my brothers transferred their share of property to my favour. So I am the sole owner since 1998. But now it is bought by the auithorities in Pakistan and they have paid for it
Expert:  Tony Tax replied 5 months ago.

Hi.

Take a look at sections 5 and 9 of RDR1 here.

If you consider yourself to be UK domiciled, you are liable to tax in the UK on your worldwide income and gains whether you bring them into the UK or not.

If you consider yourself to be non-UK domiciled, then you have had the choice to be taxed on your worldwide income and gains as described in the previous paragraph or on the remittance basis whereby you pay tax on your UK source income and gains and on non-UK source income and gains which you bring into the UK. However, as you appear to have been resident in the UK since 1995 and assuming you have been so for at least 17 of the last 20 years, you would be liable to the remittance basis charge of £90,000 for any tax year you choose to be taxed on the remittance basis. See the notes here.

Your share of the gain on the disposal of the property will be liable to Capital Gains Tax in the UK if it is taxed here. The cost for UK CGT purposes will be the sum of your share of the value of the property as at 31 March 1982 and the value of the share of the property you acquired in 1998. Gains accrued before 31 March 1982 are not subject to CGT.

I hope this helps but let em know if you have any further questions.

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