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PC Parrot

As of April 2015, any capital gain on property sold in the UK will be subject to UK tax.

Sell up soon, re-invest, and save yourself 18 to 28%.

http://www.ibtimes.co.uk/articles/527750/20131205/autumn-statement-cgt-foreign-property-tax-george.htm

Perilla · Joined: 09 Jul 2010 Posts: 792 Location: Hong Kong

Draconian though this is, I somehow doubt it will affect many TEFLers.

PC Parrot · Posted: Wed Dec 11, 2013 4:34 am Post subject:

No. Unfortunately, it won't affect many, as the TEFL industry generally pays appallingly, meaning that many TEFLers can't even afford to visit the UK let alone buy a house to relocate there in the future.

Nevertheless, it's worth posting as there might just be someone - and there are quite a few where I work - there might just be one person who has owned a property in the UK for a significant amount of time. If there is, then they could easıly be looking at a capital gain of between £100,000 and £200,000 + and a corresponding tax bill of between £28,000 and £56,000 + ... a bill which could be avoided if they were to sell up before the new tax laws come into effect.

Of course, if they intended to reside in the property for a certain length of time on returning to the UK, then CGT wouldn't be an issue, as one's main residence is exempt.

sprightly · Joined: 07 May 2003 Posts: 136 Location: England

i would think, given the number of people changing careers in their 40s, that there are a fair number of people who owned property prior to heading off to see the world.

personally, i'm more concerned about maintaining my NI contributions so i can qualify for a pension when i stop working. which will likely be when i'm 75, at this rate...

PC Parrot · Posted: Sat Mar 08, 2014 2:37 am Post subject:

I read somewhere - and it requires verification from a tax expert - that anyone subject to this new law could have a valuation done on April 5th 2015. They could then use this figure as the purchase price to compute any future capital gain.

In other words, any gain made prior to April 2015 would not be taxed.

The NI contribution is a separate issue. Anyone that doesn't keep up with their payments is missing out on a great investment - especially with the flexibility of partial pensions etc..

sprightly · Joined: 07 May 2003 Posts: 136 Location: England

annoyingly, when i filled out the form for hmrc so i could pay NI on last year's overseas income, the response i got was, 'thank you, we'll let you know how much to pay... in 18 months.'

and my income has only gotten more complicated since then.

PC Parrot · Posted: Sat Feb 07, 2015 3:54 am Post subject:

It's time for those of you who are non-UK-resident owners of property in the UK to get a property valuation done. This will reduce your future capital gains tax bill, as you can use this figure to reset your asset's value at the 5 April 2015 date.

Given the fact that the average home earned more than the average UK worker between July 2013 & Sept 2014, most people who own a house would benefit from having a valuation done.

RIP - the CGT-free era.

I hope you made it work for you.