What does the average British expat think of Tommy?

[thairade]

According to www.hmrc.gov.uk/rates/cgt.htm UK capital gains tax rate for 2009-2010 is 18%.

Does anyone know if this applies to British expats that made capital gains outside the UK, while living in Thailand? Is this the only tax I have to pay if I have NO other income... i.e. is my total tax burden only 18% or must I also pay income tax on the same capital gains?....18% just sounds to good to be true!

[JAS21]

You would be best askng this question on a site like taxiationweb.co.uk...just google 'free tax advice'. Are you classed as 'not resident' and 'not normally resident' with HMRC. That may make a difference.

My understanding is that I can sell property in the UK, I have already sold my main residence and not have to pay any capital gains..but I can't go back to live there for 5 years after the sale without having to 'cough up'!

[Gambles]

You would be best askng this question on a site like taxiationweb.co.uk...just google 'free tax advice'. Are you classed as 'not resident' and 'not normally resident' with HMRC. That may make a difference.

My understanding is that I can sell property in the UK, I have already sold my main residence and not have to pay any capital gains..but I can't go back to live there for 5 years after the sale without having to 'cough up'!

The issues are

1) did you own the asset when you ceased to be UK-resident (BTW the recent ruling on Gaines-Cooper would deem many people who might themselves non-resident to be UK resident)

2) are you non-resident for 5 TAX years (as opposed to 5 years) in total (not from the date of sale of asset.

Cheers,

Paul

[wordchild]

In general there is no capital gains tax to pay for gains taken while you are non-resident. You may be liable to pay tax if you returned to the UK depending on long you have been away. If you have been non-res for at least 5 complete tax years then gains taken while you have been away are not subject to any tax.

[antony77]

You would be best askng this question on a site like taxiationweb.co.uk...just google 'free tax advice'. Are you classed as 'not resident' and 'not normally resident' with HMRC. That may make a difference.

My understanding is that I can sell property in the UK, I have already sold my main residence and not have to pay any capital gains..but I can't go back to live there for 5 years after the sale without having to 'cough up'!

You are correct. My broker in the UK sent me a form to fill in from the UK tax people. I had to list all the periods and adresses of when I was in the UK and where I had worked and if I owned any property etc. etc. Then I was finally declared "non domiciled for tax purposes" I then did not have to pay any tax on capital gains. I also managed to claim back a lot of tax that had been deducted from my UK dividends. Note however, if you own a property in UK and you sell it before you are officially declared "non domiciled for tax purposes" you may have to pay capital gains tax. The same applies to Australia. Also if you own a property in either place you will not get tac free status.

[Gambles]

You would be best askng this question on a site like taxiationweb.co.uk...just google 'free tax advice'. Are you classed as 'not resident' and 'not normally resident' with HMRC. That may make a difference.

My understanding is that I can sell property in the UK, I have already sold my main residence and not have to pay any capital gains..but I can't go back to live there for 5 years after the sale without having to 'cough up'!

You are correct. My broker in the UK sent me a form to fill in from the UK tax people. I had to list all the periods and adresses of when I was in the UK and where I had worked and if I owned any property etc. etc. Then I was finally declared "non domiciled for tax purposes" I then did not have to pay any tax on capital gains. I also managed to claim back a lot of tax that had been deducted from my UK dividends. Note however, if you own a property in UK and you sell it before you are officially declared "non domiciled for tax purposes" you may have to pay capital gains tax. The same applies to Australia. Also if you own a property in either place you will not get tac free status.

careful not to confuse domicile with residence

also beware of the recent Gaines-Cooper ruling about residence - I'll try to post on this later

[antony77]

You would be best askng this question on a site like taxiationweb.co.uk...just google 'free tax advice'. Are you classed as 'not resident' and 'not normally resident' with HMRC. That may make a difference.

My understanding is that I can sell property in the UK, I have already sold my main residence and not have to pay any capital gains..but I can't go back to live there for 5 years after the sale without having to 'cough up'!

You are correct. My broker in the UK sent me a form to fill in from the UK tax people. I had to list all the periods and adresses of when I was in the UK and where I had worked and if I owned any property etc. etc. Then I was finally declared "non domiciled for tax purposes" I then did not have to pay any tax on capital gains. I also managed to claim back a lot of tax that had been deducted from my UK dividends. Note however, if you own a property in UK and you sell it before you are officially declared "non domiciled for tax purposes" you may have to pay capital gains tax. The same applies to Australia. Also if you own a property in either place you will not get tac free status.

careful not to confuse domicile with residence

also beware of the recent Gaines-Cooper ruling about residence - I'll try to post on this later

I used the word domiciled. You can become a non resident but that does not mean you don't have to pay UK tax.

[Gambles]

You would be best askng this question on a site like taxiationweb.co.uk...just google 'free tax advice'. Are you classed as 'not resident' and 'not normally resident' with HMRC. That may make a difference.

My understanding is that I can sell property in the UK, I have already sold my main residence and not have to pay any capital gains..but I can't go back to live there for 5 years after the sale without having to 'cough up'!

You are correct. My broker in the UK sent me a form to fill in from the UK tax people. I had to list all the periods and adresses of when I was in the UK and where I had worked and if I owned any property etc. etc. Then I was finally declared "non domiciled for tax purposes" I then did not have to pay any tax on capital gains. I also managed to claim back a lot of tax that had been deducted from my UK dividends. Note however, if you own a property in UK and you sell it before you are officially declared "non domiciled for tax purposes" you may have to pay capital gains tax. The same applies to Australia. Also if you own a property in either place you will not get tac free status.

careful not to confuse domicile with residence

also beware of the recent Gaines-Cooper ruling about residence - I'll try to post on this later

I used the word domiciled. You can become a non resident but that does not mean you don't have to pay UK tax.

Until and unless ths sytem is simplified then liability to the various UK taxes is determined by domicile, residence and ordinary residence. All of these were under review anyway but Gaines-Cooper has really thrown spanners in works for many people. I'll add something on this topic as soon as I get back to Bkk

cheers all,

Paul