UK Capital Gains selling a Thai Condo - With UK domiciled primary residence

[spambot]

When you own a primary residence in the UK any other property that is not your primary residence when sold is subject to CGT, this is for any disposal of assets worldwide, including overseas properties - Hence any gain when selling Thailand owned Condo will be subject to this tax. The CGT calculation and considerations for overseas property is similar to that for selling a second UK property, based on the difference between the selling price and the purchase price, after adjusting for allowable expenses.

 

Having said all this - Are there any mechanisms or reporting processes that would highlight such a sale and capital gain to UK HMRC if this was not self reported?

 

[Dan SG]

There is reporting of bank account info I think that could make them aware.  Tax is self assessment anyway so if its subject to tax and you don't declare (notwithstanding how detectable) you always run the risk of it being unearthed many years later and whacked with with late penalties / interest.  That's how most the celebs you see being bankrupt due to unpaid tax liabilities come undone - it's all the interest and penalties that accrues over many years not necessarily the underlying tax they can't pay.  

 

However, I don't really understand why you think selling a thai condo would be subject to tax in the UK just because you have a property in the UK.  That's not how tax works.  There needs to be some sort of a connection to the UK through residency or ordinary residency tests.  See link on HMRC website.  If you are non-UK resident then it's not subject to tax in the UK.  If you're not non-resident now then think about trying to sell when you are non-resi (assuming rules don't change....election next week!)

 

https://www.gov.uk/tax-sell-property/selling-overseas-property#:~:text=You pay Capital Gains Tax,be able to claim relief.

[spambot]

16 hours ago, Dan SG said:

 However, I don't really understand why you think selling a thai condo would be subject to tax in the UK just because you have a property in the UK.  That's not how tax works.  There needs to be some sort of a connection to the UK through residency or ordinary residency tests.  See link on HMRC website.  If you are non-UK resident then it's not subject to tax in the UK.  If you're not non-resident now then think about trying to sell when you are non-resi (assuming rules don't change....election next week!)

 

https://www.gov.uk/tax-sell-property/selling-overseas-property#:~:text=You pay Capital Gains Tax,be able to claim relief.

Thanks Dan - I appreciate your response.

As identified in your link provided "You pay Capital Gains Tax when you ‘dispose of’ overseas property if you’re resident in the UK."- And identified in the title of post which was for this same situation of "UK domiciled primary residence".

 

The info about the celebs being exposed out later with the penalties was a useful and sobering insight - This was driven by the recent CGT allowance drop for the 2024 to 2025 tax year since the allowance is now only £3,000. However its extremely difficult to put a price on peace of mind.

[Keep Right]

I have never heard of a condo generating capital gains in Thailand. Most depreciate every year.

[spambot]

3 hours ago, Keep Right said:

I have never heard of a condo generating capital gains in Thailand. Most depreciate every year.

Ha...Brilliant! -  Good Point

[Mike Lister]

It depends on your tax residency.

 

https://www.gov.uk/tax-sell-property/selling-overseas-property#:~:text=You pay Capital Gains Tax,be able to claim relief.

 

Also, the income will be reported under CRS rules. 

[Dan SG]

7 hours ago, spambot said:

Thanks Dan - I appreciate your response.

As identified in your link provided "You pay Capital Gains Tax when you ‘dispose of’ overseas property if you’re resident in the UK."- And identified in the title of post which was for this same situation of "UK domiciled primary residence".

 

The info about the celebs being exposed out later with the penalties was a useful and sobering insight - This was driven by the recent CGT allowance drop for the 2024 to 2025 tax year since the allowance is now only £3,000. However its extremely difficult to put a price on peace of mind.

Thanks, I've re re-read it and see now that you are saying you are a UK resident.  Yes the tax on capital gains is a joke as are many things in the UK!  If you have plans to move back to Thailand you should think of selling when you're not resident

[CharlieKo]

I think you will find that if you did make a profit from selling a Condo here in Thailand. The Thai revenue department would have first call on any taxes due. You would then inform HMRC of the amount of tax paid and an allowance would be make. Any short fall in relation the UK CGT would then be levied against you. 

 

I think I'm right in saying this all falls within the double taxation rules between Thailand and the UK.