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Sam, Accountant
Category: UK Tax
Satisfied Customers: 13943
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
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My father, a UK pensioner, is going to sell a family

Customer Question

My father, a UK pensioner, is going to sell a family property in Hong Kong. The property was used by the family rather than for investment purpose. Would the repatriation of funds arising from the sale be subject to tax in the UK?
Many thanks
Submitted: 11 months ago.
Category: UK Tax
Expert:  Sam replied 11 months ago.

Hi, Sam here, one of the UK Tax Experts here on Just Answer, Thank you for your question - I shall reply shortly.

Expert:  Sam replied 11 months ago.

HI Paul

Its not the repatriation of the funds that give rise to tax but the sale of property that has not been your fathers main residence for (it would seem) at least 18 months (so a capital gain consideration)

The gain will be the profit made between the sale price and the purcahse (Or acquisition price) from which the costs to buy and sell and any capital improvements can be deducted,

If this was ever his home then there are tax reliefs due to mitigate the charge called private residence relief, but if this was never his home then this figure will just have the first £11,100 exempt (as this is the annual exemption allowance) and any remaining gain would be subject to capital gains tax.

Your father should advsie HMRC of this sale so he can complete a slef assessment tax return with foreign income and capital gain page after 05/04/2017 (if the property was sold between 06/04/2016 and now) and any tax arising is due to be paid no later than 31/01/2018

Do let me know if I can assist further