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Fluffycookie

Buying house in Scotland before moving back

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Hi,

We are returning to Scotland in January and are looking to buy a house.

we are aiming to put our house here on the market this month.

if we see a house in Scotland that we would like to buy before we sell our home here and before we actually move will there be any tax implications in either country?

any advice most welcome, thank you.

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I can’t comment on tax implications, but it is something I would strongly advise against as areas and things can be very personal and buying a house without visiting would be a huge risk. 

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I agree, rent unseen can be dodgy enough but to buy............


So many wineries ......so little time :yes:

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Thanks to you both for your feedback.  It may not happen but if something we like does come up soon we are familiar with the area we are looking in  and having family on hand to view properties etc.  I am just not clear on the possible financial implications re. A crossover in 2 primary residences while trying to sell our current house here.

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Won’t you pay more stamp duty if you’ve not sold your previous house and you buy another? When we bought our UK house we had to state that we didn’t own another one anywhere in the world. 

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Yes I believe you are right Chortlepuss I was wondering / hoping If there might be a clause allowing a crossover period  if our current home is actually on the market or if an offer has been made and we are in the middle of selling. 

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On 02/09/2020 at 04:53, Fluffycookie said:

Hi,

We are returning to Scotland in January and are looking to buy a house.

we are aiming to put our house here on the market this month.

if we see a house in Scotland that we would like to buy before we sell our home here and before we actually move will there be any tax implications in either country?

any advice most welcome, thank you.

No because it’s your sole residence. You are good to go. Scotland is beautiful, I work around Aberdeen often, Aberdeenshire is beautiful, .......getting harder to buy property round there though and prices skyrocketing. Since covid all the English escaping their overcrowded cities are heading north to Aberdeenshire and the Highlands snapping up rural and village properties.  I just love that car journey from Tomintoul to Braemar.
 

 

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4 hours ago, Home and Happy said:

No because it’s your sole residence. You are good to go. Scotland is beautiful, I work around Aberdeen often, Aberdeenshire is beautiful, .......getting harder to buy property round there though and prices skyrocketing. Since covid all the English escaping their overcrowded cities are heading north to Aberdeenshire and the Highlands snapping up rural and village properties.  I just love that car journey from Tomintoul to Braemar.
 

 

I am originally from Galloway, South West Scotland and I know what you mean about the English and a few Irish buying up property.   The house prices have risen hugely over the years and of course you get what you pay for.  A decent house in the local towns average 300,000 pounds and they can go up to a million.  

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A word of caution, the minute you purchase a house in the UK, you become a tax resident for UK tax purposes

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26 minutes ago, Megohome said:

A word of caution, the minute you purchase a house in the UK, you become a tax resident for UK tax purposes

Are you 100% sure about that?


Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

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Yes, we looked into buying a house before we arrive too.

there is three criteria for being a tax resident

1. 183 days

2. Home owner

3. have a job in the uk

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Loads of people still own homes in UK but are still tax resident in Aus not UK. just owning a home does not make you a tax resident.  You may pay some taxes and do a UK return but as a non resident.

 

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So many wineries ......so little time :yes:

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16 minutes ago, rammygirl said:

Loads of people still own homes in UK but are still tax resident in Aus not UK. just owning a home does not make you a tax resident.  You may pay some taxes and do a UK return but as a non resident.

 

Is it the same if the UK property is your sole residence as Home and Happy stated above when replying to the OP? Id imagine if its your sole residence you would be a tax resident there too.

 Cal x


If you don't go after what you want, you'll never have it. If you don't ask, the answer is always no. If you don't step forward, you're always in the same place...

If you get a chance,take it, If it changes your life,let it. Nobody said it would be easy they just said it would be worth it...

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On 02/09/2020 at 04:53, Fluffycookie said:

Hi,

We are returning to Scotland in January and are looking to buy a house.

we are aiming to put our house here on the market this month.

if we see a house in Scotland that we would like to buy before we sell our home here and before we actually move will there be any tax implications in either country?

any advice most welcome, thank you.

Just remembered -   In U.K. there is a 2nd homes tax which you get paid back if your previous home sells within 18 months,   but I would think that this is only relevant to U.K. property as it’s to deter people buying multiple U.K. properties. Just don’t tell your purchasing solicitor anything about your house out there since it will probably be long sold by time you complete a sale here. . They won’t know and won’t check.  All your bank needs to know is that there is a legal and above board sum of money on its way so you don’t get a Scottish Government UWO against you. (Unexplained Wealth Order which applies to bank transfers or deposits of money above £10k).

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3 hours ago, Megohome said:

Yes, we looked into buying a house before we arrive too.

there is three criteria for being a tax resident

1. 183 days

2. Home owner

3. have a job in the uk

So a foreigner who buys a property would be taxed as a resident, not as a foreign investor? Weird


Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

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3 hours ago, Marisawright said:

So a foreigner who buys a property would be taxed as a resident, not as a foreign investor? Weird

The big drawback to buying in the UK is trying to get a mortgage when you are still resident overseas. As far as tax implications go, the UK and Australia have a reciprocal tax agreement that prevents double taxation - i.e. you can’t be charged tax in both countries - so you get an accountant on board who understands both tax systems. When I lived outside the UK and owned property in both countries I was charged Uk tax on the rental income for my UK property. Nothing more ... but the rules have changed since then, even though it was only ten years ago. You can’t trust the responses from HMRC - they led me astray so many times when I moved to Australia three years ago - I don’t think it was deliberate, they just didn’t know themselves. 


103 visa application lodged February 2013. 143 visa application submitted January 2016. Police checks and form 80 submitted February 29th 2016. Visa granted April 4th 2016.

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8 hours ago, calNgary said:

Is it the same if the UK property is your sole residence as Home and Happy stated above when replying to the OP? Id imagine if its your sole residence you would be a tax resident there too.

 Cal x

Just owning a house in the UK doesn’t make you tax resident there if you are living in Australia.  You may still be liable for UK tax as a non resident though. 


So many wineries ......so little time :yes:

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8 hours ago, rammygirl said:

Just owning a house in the UK doesn’t make you tax resident there if you are living in Australia.  You may still be liable for UK tax as a non resident though. 

That’s what’s i would have thought 


Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

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