LittleMissWildChild Posted May 30, 2015 Share Posted May 30, 2015 Hi there I'm wondering here if anyone here can help. My husband and I live in Australia but he has a flat in London. We want to sell the UK flat and buy something here instead. We currently own (well, the bank does) a house in Australia. Anyway my husband is a permanent resident for Australia, and is a Non-Resident Landlord for tax purposes in the UK. He always does a UK tax return as well as an Australian one. When we sell the flat does he need to pay capital gains in the UK bearing in mind that he will be paying capital gains in Australia as well? And how does he opt out of doing a tax return in future once it is sold and we have no ties to the UK, as after we sell it that will be our final tax return - we don't want to get fines for not submitting a tax return in future when we don't actually need to. We have tried contacting HMRC but not had any luck, they don't seem to understand what we're asking. We're happy to pay whatever tax we need to pay, we just don't want to have to pay it twice. Quote Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted July 2, 2015 Share Posted July 2, 2015 Try asking Alan Collett he may be able to help Quote Link to comment Share on other sites More sharing options...
akiralx Posted July 2, 2015 Share Posted July 2, 2015 You will only have to pay any CGT once. I can't see how HMRC could fine you for not completing a tax return when none is owing. Just don't complete another after the final one. I never completed a UK tax return when letting my UK house - the rent was under the personal allowance, and HMRC never sent my agent a registration number in any event, despite being asked repeatedly. Quote Link to comment Share on other sites More sharing options...
Suzukiscottie Posted July 2, 2015 Share Posted July 2, 2015 HMRC do issue fines for not submitting a tax return on time, regardless of whether there is any tax owing or not. Our rental income in the UK falls well below the personal threshold but we still copped a fine for late submission of my wife's tax return. ( we argued that the late paper-based submission was their fault due to them not sending online registration details in time to submit electronically, and we got the fine paid back). Quote Link to comment Share on other sites More sharing options...
Bungo Posted July 2, 2015 Share Posted July 2, 2015 You will only have to pay any CGT once. I can't see how HMRC could fine you for not completing a tax return when none is owing. Just don't complete another after the final one. I never completed a UK tax return when letting my UK house - the rent was under the personal allowance, and HMRC never sent my agent a registration number in any event, despite being asked repeatedly. If HMRC ask for a tax return and it isn't done, then they certainly will impose a fine. Guaranteed. OP should either do a nil return one year and then they will most probably be told not to do one the following year. Or they need to try and get hold of someone in HMRC and have the request for the return removed. But considering one in four calls to HMRC are never answered, personally I think the nil return is the easier option! As as for you, what registration number do you mean? And if you had no income above a personal allowance then why did you need / have an agent? Quote Link to comment Share on other sites More sharing options...
newjez Posted July 2, 2015 Share Posted July 2, 2015 Hi there I'm wondering here if anyone here can help. My husband and I live in Australia but he has a flat in London. We want to sell the UK flat and buy something here instead. We currently own (well, the bank does) a house in Australia. Anyway my husband is a permanent resident for Australia, and is a Non-Resident Landlord for tax purposes in the UK. He always does a UK tax return as well as an Australian one. When we sell the flat does he need to pay capital gains in the UK bearing in mind that he will be paying capital gains in Australia as well? And how does he opt out of doing a tax return in future once it is sold and we have no ties to the UK, as after we sell it that will be our final tax return - we don't want to get fines for not submitting a tax return in future when we don't actually need to. We have tried contacting HMRC but not had any luck, they don't seem to understand what we're asking. We're happy to pay whatever tax we need to pay, we just don't want to have to pay it twice. You may also need to consider exchange rate fluctuations. You have made a foreign exchange profit. This may be more than any capital gain. You also need to consider whether you lived in the flat. Might be easier to hire an accountant for a one off. You can write to the tax office and explain that it will be your last tax return. If they agree, it will be. Quote Link to comment Share on other sites More sharing options...
Guest Posted July 2, 2015 Share Posted July 2, 2015 I cannot see why you would not be liable for CGT but the amount owed will be reduced if it was previously residential property according to how long he lived in it before it was rented out. As as an aside I ended up with a £5k fine for not completing a UK tax return even though I had made a loss on a property and an advisor at HMRC told me I did not need to complete it! Fought it and won but my advice would be for the couple of hours work if you receive a tax return complete it! Quote Link to comment Share on other sites More sharing options...
akiralx Posted July 3, 2015 Share Posted July 3, 2015 what registration number do you mean? And if you had no income above a personal allowance then why did you need / have an agent? The registration number for the agent, who was looking after the house and collecting the rent - a friend of mine. I recall when applying to be a non-resident landlord the form asks for your agent's registration number? They never supplied one. Quote Link to comment Share on other sites More sharing options...
wolvesaussie Posted July 3, 2015 Share Posted July 3, 2015 (edited) This is a big concern to me, I came over when it was 1.4 to the pound... If I sell I will sell for a loss or a break even in pounds, but now the pound is back up to 2:1 is that going to mean I have to pay CGT even tho I have made a loss, that's a kick in the teeth.. Especially when the money for the deposit came over from Australia at 2:20- 1 in 2009... Edited July 3, 2015 by wolvesaussie Quote Link to comment Share on other sites More sharing options...
Guest Posted July 3, 2015 Share Posted July 3, 2015 This is a big concern to me, I came over when it was 1.4 to the pound... If I sell I will sell for a loss or a break even in pounds, but now the pound is back up to 2:1 is that going to mean I have to pay CGT even tho I have made a loss, that's a kick in the teeth.. Especially when the money for the deposit came over from Australia at 2:20- 1 in 2009... CGT is only on the profit you make and you do get a tax free allowance (at the moment) so if you make a loss or a very small profit no CGT Quote Link to comment Share on other sites More sharing options...
wolvesaussie Posted July 3, 2015 Share Posted July 3, 2015 (edited) CGT is only on the profit you make and you do get a tax free allowance (at the moment) so if you make a loss or a very small profit no CGT I buy house in 2007 100,000 pounds ($260,000).... I move to Australia house 2013 at this point is worth 100,000 ($140,000).. I sell now for a quick sale at 90,000 pounds ($180,000 dollars).. I am concerned that I am going to have to pay CGT on 40,000 aussie dollars, when in reality I have made loss Edited July 3, 2015 by wolvesaussie Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.