UK Tax

UK Tax Questions? Ask a UK Tax Advisor for answers ASAP

Ask an Expert,
Get an Answer ASAP!

UK Tax
This answer was rated:

Hi Sam,Good afternoonI was born brought up in India

Hi Sam, Good afternoon I...

Hi Sam, Good afternoon I was born brought up in India but I moved to the UK for job mobility in 2006 and became British Citizen in 2013. Back in Dec 2005, I had purchased my first property in India with the intention of having it for residential purposes, during the entire period I have been the owner and have not let it out for rent. The property became vacant since I relocated to UK for job (company job transfer) and used it only when I visited India. Now I want to sell the property and transfer the money proceeds back to UK, am I liable for capital gains tax in UK ?


 


Since last 6 months I have been staying in India with my family and plan to return to UK in Apr next year. Since my arrival in India in April 13, I helped my father in selling his property and purchasing a new property where I gave up my own savings and also took a home loan, this has made me a third joint holder in the second property.


 


Can I claim Principal Private Residence (PPR) for my overseas owned property which I plan to sell ? Your help will be much appreciated. Thanks Rahul

Show More
Show Less
Ask Your Own UK Tax Question
Answered in 13 minutes by:
11/9/2013
Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 13,973
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Verified

Hi

 

Thanks for your question and for asking for me.

 

I am afraid there will be capital gains tax arising, as there was a period of more than 36 months when this has not been your home.

 

The fact that you contributed to the purchase of your fathers property has no bearing, nor the fact that there is no capital gains tax in India.

 

You will fall under UK tax jurisdiction as you have UK citizenship, and there will be a period of less than 5 years (during which the sale takes place) that you have been absent from the UK.

 

Also the gain will be £100,000 less the purchase price of £20,000 (there is no indexation permitted) so the gain will be £80,000 and not £62,000

 

But you will be a reduction for the time this was your home, and also have the first £10,600 exempt (as this your annual exemption allowance for capital gains)

 

Do feel to ask any follow up questions on the information I have provided.

 

Thanks

 

Sam

 

 

Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 13,973
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Verified
Sam and 87 other UK Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 4 years ago


Hi Sam


 


Thanks so much


 


in regards to your below input, I have not left the UK, I am staying over in india since Apr '13 and working locally. I plan to leave India and relocate to UK.


 


 


You will fall under UK tax jurisdiction as you have UK citizenship, and there will be a period of less than 5 years (during which the sale takes place) that you have been absent from the UK.


 


 


Why I am not able to claim PPR on the grounds that I was working away from home. Since it is my own home and the intention was not make any profit and also did not give the flat for any renting, why can i not claim? Is it because the property is outside UK?

Hi

 

Thanks for your response

 

The answer still remains the same in terms of capital gains arising on the sale - and the fact you are merely working/staying in India for 6 months.

 

You cannot be considered within the job relocation position as this works when leaving the UK to work abroad, with remaining property in the UK, not the other way around (which would fall under India's tax jurisdiction, if capital gains arose)

 

Thanks


Sam

 

 

 

 

 

 

Ask Your Own UK Tax Question
Customer reply replied 4 years ago


Thanks Sam for the clarification


 


Since I earn locally (Inida) what tax band will apply for me 18% or 28% for this financial year?


 


Also can i deduct any maintainance cost that I spent in the last few years and do i need to provide any supporting documents to support the claim?

Hi

 

Thanks for your further questions

 

Whether you have income from India or in the UK, it will all be liable to UK tax , as you will be treated as resident throughout this and following tax years (based on what you have advised me) so remain liable to tax on worldwide income.

 

The tax position for capital gain purposes, are as follows -

If your annual income is in excess of £42,475 a year, then the gain will all be liable to 28%.

If you annual income is more than £9440 and less than £42,475, then any unused basic rate band, can be used to allow the equivalent amount of gain at 18% and any further gain at 28%

So for example your annual income is £30,000 then you have £12,475 unused basic rate band (£42474 less £30,000) so the first £12,475 of the gain will be at 18% and the remaining gain at 28% (of course these rates are applied, after costs, capital improvements, reliefs and annual exemption allowance have been applied)

 

Maintenance, if general repairs are not deductible, they can only be allowed as a deduction against the gain IF capital improvement such as total new kitchen, bathroom and so on and yes you would need to have evidence of these costs, should HMRC ask for them.

 

Thanks

 

Sam

 

 

Ask Your Own UK Tax Question
Ask Sam Your Own Question
Sam
Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 13,973
13,973 Satisfied Customers
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

Sam is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Sam

Sam

Accountant

13,973 satisfied customers

26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

bigduckontax

bigduckontax

Accountant

859 satisfied customers

FCCA FCMA CGMA ACIS

TEAP007

TEAP007

Tax Preparer

759 satisfied customers

Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years

Andrew Baker(baktax)

Andrew Baker(baktax)

Personal Tax Adviser

756 satisfied customers

35+ years experience in income tax, CGT, non-residence

berduchwal

berduchwal

Accountant

669 satisfied customers

Qualified accountant and bookkeeper running my own practice since 2008.

Clare

Clare

Solicitor

147 satisfied customers

25 years exeperience as a high street solcitor

Mrs-Tax

Mrs-Tax

Tax Adviser

59 satisfied customers

Law Degree, 19 years in UK Tax.

< Previous | Next >

Related UK Tax Questions
I don't have a social security question. I have a micro
I don't have a social security question. I have a micro entity account question. … read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,059 satisfied customers
I have been sent a letter from the tax - it seems my
I have been sent a letter from the tax - it seems my accountant has declared more subbies working for me than actually did, despite the fact that I sent off my subbies tax deductions every month after… read more
Sam
Sam
Accountant
13,973 satisfied customers
We have a holiday home in France which we have had for 23
We have a holiday home in France which we have had for 23 years and wish to sell. I need to know which costs for renovating it are allowable against capital gains tax.… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,059 satisfied customers
I am a UK resident for tax purposes since 2012. I plan to
I am a UK resident for tax purposes since 2012. I plan to transfer to my 25 year old son who is a UK tax resident, this year a plot of land in my country of birth which i bought 23 years for the equiv… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,059 satisfied customers
We are a us based company. We have a question about vat.
Hello. We are a us based company. We have a question about vat.Essentially we connect a client in the UK with a client who could be anywhere in the world.We handle the payments.We take money from the … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
This is a question for a Verified UK tax professional only I
This is a question for a Verified UK tax professional onlyI am a British national and an Australian resident for tax purposes since March 2016 (I have not been outside Australia since then and have a … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
I am serving in Army. I was advised by HM Customes to use a
I am serving in Army. I was advised by HM Customes to use a UK414 to register my tax free vehicle when I bought it over from Germany, the same person is now telling me 1 1/2 years later that I have to… read more
TEAP007
TEAP007
Tax Preparer
Fully Trained Inspector of Taxes B1
759 satisfied customers
I get tax credits but have inherited money following the
i get tax credits but have inherited money following the death of my mum. Do i have to advise tax credits of this. Have given some money to other family and paid off debts. Not a lot left but not sure… read more
Sam
Sam
Accountant
13,973 satisfied customers
I am receiveing money from abroad, do i have to pay for Non
i am receiveing money from abroad, do i have to pay for Non Residential Tax Clearance Certificate? … read more
Clare
Clare
Solicitor
Bachelor's Degree
147 satisfied customers
I used to live in Ireland 4 years ago and set up my TIN
Hello, I used to live in Ireland 4 years ago and set up my TIN because I do world-wise freelance, however I've been consistently moving countries because I like to travel and wasn't aware on how to do… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
I'm trying to submit abbreviated company accounts for my
I'm trying to submit abbreviated company accounts for my Cricket Club to companies house and not an accountant! Keeps coming up with the message "Current period: Members' funds must be equal to the to… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,059 satisfied customers
I bought a property in 1997 for £120K i moved out in 2004
i bought a property in 1997 for £120K i moved out in 2004 and started renting it out. so it wasnt my main residential address from 2004 onwards. I am looking to sell property prices seem to be about £… read more
Julie Kingham
Julie Kingham
Director
Chartered Tax Adviser
733 satisfied customers
My 2016-17 tax statement from Funding Circle is here (
My 2016-17 tax statement from Funding Circle is here (https://i.imgur.com/WvhqXTI.jpg). Funding Circle's guidance on tax is here (https://support.fundingcircle.com/hc/en-us/articles/214636966). The in… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
May I ask a question about shares and the Companies House
May I ask a question about shares and the Companies House filing of accounts? … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
I am trying to help my husband do his tax return he is a
i am trying to help my husband do his tax return he is a limied compan registered under the cis … read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,059 satisfied customers
A Limited Company registered in the UK owns a property in
A Limited Company registered in the UK owns a property in London UK which it Rents out for profit.A second Company registered in Cyprus is the trustee for this Company. My question is which Company ha… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
In 2012 I was employed by an English company although
In 2012 I was employed by an English company although resident in Spain. I earned 10,000 pounds plus I have an English government pension 13000 pounds on all of this I paid 4000 pounds tax in the UK. … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
I have a chargeable event certificate on the full surrender
I have a chargeable event certificate on the full surrender of a bond where do I enter the details of the gain outlined on the cert in my self assessment tax return? … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x