Uk Capital Gains Tax When Selling Land In Thailand

[djb123]

I have some land in Thailand that I am thinking of selling.

Can anyone advise me of the UK Capital Gains Tax implications as I wish to return the proceeds of the sale to the UK.

As Thailand has a Double Taxation Agreement with the UK does this mean I will only have to pay the applicable Thai taxes?

Thanks in advance

[Morden]

You own land in Thailand? Please, how did you manage that?

[William Osborne]

Why would you tell UK what you are doing in Thailand

as pointed out Westerners can't own land in thailand ...

[Rinrada]

Bit like me selling a bit of land here in London and what ..telling the Thai Gov...or the other 50 or so countries that I have lived in or worked at some time over the last so many years...(incl ...Kampuchea../Viet-N)

[gotlost]

The OP may have dual nationalities and some people only know the honest road.

[briley]

Was made more complicated in the late 1990's but as far as I know

If you are resident in the UK for tax purposes you pay UK capital gains.

If non-resident for less than 5 years you might pay capital gains tax unless your non-resident period goes over 5 years

If non-resident for more than 5 years you do not pay capital gains tax

You can reduce your capital gains tax due by any tax on the gain made that you paid to the Thai authorities.

Now I duck as I am sure bits of this are not quite correct - but hopefully the gist of it is OK!

[PattayaParent]

^ sounds about right to me briley but I didn't know there was a 5 year qualification I though it was as soon as you become non resident of UK.

[quiksilva]

Unless it was acquired a very long time ago, or he has BOI/IEAT privileges, or he invested THB 40 million in Government bonds over 5 years...

[briley]

PattayaParent - the 5 year rule came in because some rich persons decided to become non-res for one year and cash in millions of pound of capital gains.

Think it was one of Gordon Brown's babies.

[singhadrinker]

Although it has been simplified recently capital gains tax

is still complicated. If you are deemed to be resident,

ordinarily resident & domiciled in the UK then you are

liable to Capital Gains Tax on worldwide gains.

Any local capital gains tax payable on the disposal is usually

deductible from the UK liability.

The rate of UK Capital Gains Tax is 18%

An individual is entitled to an "Annual Tax Free CGT Allowance"

currently just under £10,100 so no tax is payable if the

gain is no more than £56,111

If you are non resident try this link:-

www.hmrc.gov.uk/cnr/faqs_capgains.htm#cg1

[djb123]

Obviously for the pedants out there I don't 'own' the land but have the voting control over a company that does...

I am resident in the UK for tax purposes.

Singhadrinker pardon my thickness but how do you work out that I would only be liable to pay tax on gains over £56,111?

[singhadrinker]

Obviously for the pedants out there I don't 'own' the land but have the voting control over a company that does...

I am resident in the UK for tax purposes.

Singhadrinker pardon my thickness but how do you work out that I would only be liable to pay tax on gains over £56,111?

Sorry DJB - ignore the £56,111 - mental aberation I was thinking of the old taper relief rules!.

UK Tax is payable on gains over £10,100, for individuals.