House In Uk-living In Thailand And Cgt

[mrbojangles]

Just as an add-on to this post. The Government are introducing a new scheme, next year i think, where you can off-set your property against your pension. I haven't got any details to hand (as fortunately i'm not near retirement age ) but i'll see if i can source some more in-depth details on it.

MrBoJ

[Steve2UK]

A non-resident is no longer entitled to treatment on the NHS.

Anyone spending more than 6 months per year outside UK is no longer entitled.

Rights can be reinstated by declaring that you are returning to live in UK permanently

<{POST_SNAPBACK}>

Loong, not wanting to say you're wrong, but can you say where you got this information from? I've been asking about it on another thread and I'd like to be 100% sure.

<{POST_SNAPBACK}>

Steve, here are 2 links, as with most things can be a little heavy going

Hope it helps

http://www.dh.gov.uk/PolicyAndGuidance/Int...&chk=qv2fY/

http://www.dh.gov.uk/PolicyAndGuidance/Int...&chk=uhB/w0

<{POST_SNAPBACK}>

The crux of the matter is that it is up to the doctor or hospital involved. So there are no hard and fast rules. I've personally never heard of anyone being asked to provide evidence they reside in Uk. But I'm sure that in parts of England they do. For instance my dentist knows I live in Thailand but he couldn't care less. I still get treatment. In fact a number of Health Trusts are frightened to enforce any rules due to Human Rights issues.

<{POST_SNAPBACK}>

Much appreciated Loong & Dragonman. Seems like it would be a good idea to try and stay on the GP's list; I think their practice still gets paid per capita (?) - if so, a GP is unlikely to chase up a patient he/she hasn't seen for a while......

Presumably, if questioned about UK resident status, the wannabe patient just puts on the best poker face and says that the return to the UK is permanent - and not impossible for them to change their mind afterwards.............

As a side issue, isn't it just amazing that (by living in Thailand) you lose your pension uprating yet also lose your automatic entitlement to NHS treatment?

[edd]

When I move to Thailand full time I will still be paying tax on my company pension,

My old age pension and on any investments even if offshore.

I will no longer have a house [sale used for investment money] in the UK only an accommodation address thanks to a friend.

If I tell the Government that I am leaving then I will no longer get the annual cost of living increase on my OAP but TAX – TAX – TAX on my income.

If I lived in the EU or some countries like Malaysia then I would get the yearly increase as of right.

Now perhaps if I have to return sick I would be treated worse than a none Britt.

How can this be fair?

[Rinrada]

When I move to Thailand full time I will still be paying tax on my company pension,

My old age pension and on any investments even if offshore.

I will no longer have a house [sale used for investment money] in the UK only an accommodation address thanks to a friend.

If I tell the Government that I am leaving then I will no longer get the annual cost of living increase on my OAP but TAX – TAX – TAX on my income.

If I lived in the EU or some countries like Malaysia then I would get the yearly increase as of right.

Now perhaps if I have to return sick I would be treated worse than a none Britt.

How can this be fair?

It aint but untill the law changes which I am sure that it will one day....although we might all be brown bread by then.. get youself a bank a/c in Europe/offshore,keep your mates accom number or rent a letter box in Malaysia or the Phillipines

2nd point..

You're allowed back into the UK for up to 90 days in any one tax year, without losing your status......true... but why shout about it.

As a UK-EU pp holder you dont get checked in or out so unless you sign on the dole or claim benefits who is to know....

I have some relatives who have been back and forward in Saudi for over 25 years and never had a problem and all their dosh ...tax free ...I even helped them get their first jobs there ....in the 70s

[Steve2UK]

As a UK-EU pp holder you dont get checked in or out so unless you sign on the dole or claim benefits who is to know....

<{POST_SNAPBACK}>

Watch this space. Following the July bombings and subsequent re-examination of UK border controls etc, it's probably only a matter of time before all passport holders are recorded in and out.

[mrbojangles]

As a UK-EU pp holder you dont get checked in or out so unless you sign on the dole or claim benefits who is to know....

Watch this space. Following the July bombings and subsequent re-examination of UK border controls etc, it's probably only a matter of time before all passport holders are recorded in and out.

True, but will they pass the information on to the pensions, NHS and benefits departments

[Pattaya_Fox]

As a UK-EU pp holder you dont get checked in or out so unless you sign on the dole or claim benefits who is to know....

<{POST_SNAPBACK}>

Watch this space. Following the July bombings and subsequent re-examination of UK border controls etc, it's probably only a matter of time before all passport holders are recorded in and out.

<{POST_SNAPBACK}>

True, but will they pass the information on to the pensions, NHS and benefits departments

<{POST_SNAPBACK}>

If and when the New British I D card is introduced you can bet your bottom dollar (sorry) Pound that they will definitely know your movements

[ThaiPauly]

I am just in the middle of doing my UK tax return at present. I have a property in the UK which I rent out (not through agents as my Son rents it) I am LIABLE to pay TAX on the rent but I (as are all UK residents entiltled to a tax free allowance of around 4k a year. ( I obviously dont charge my Son the market value. By the time I have paid Ground Rent, Repairs and so forth my "Profit" brings me down to a virtually non taxable situation. I also enquired as to if I could sell the property without it being subject to CGT ( as my Son has stated his intention to buy his own place within the next year) and was told in no uncertain terms by my accountants that I have to be a NON RESIDENT for at least 5 years (I am half way through that period).

Hope this info helps, but my Accountant is very good (and expensive) you gotta be if you can dominate a whole page article about yourself and your company on the back page of the Sunday Times "Personal Finance " section.

Cheers

TP

[Pattaya_Fox]

I am just in the middle of doing my UK tax return at present. I have a property in the UK which I rent out (not through agents as my Son rents it) I am LIABLE to pay TAX on the rent but I (as are all UK residents entiltled to a tax free allowance of around 4k a year. ( I obviously dont charge my Son the market value. By the time I have paid Ground Rent, Repairs and so forth my "Profit"  brings me down to a virtually non taxable situation. I also enquired as to if I could sell the property  without it being subject to CGT ( as my Son has stated his intention to buy his own place within the next year) and was told in no uncertain terms by my accountants that I have to be a NON RESIDENT for at least 5 years (I am half way through that period).

Hope this info helps, but my Accountant is very good  (and expensive) you gotta be if you can dominate a whole page article about yourself and your company on the back page of the Sunday Times "Personal Finance " section.

Cheers

TP

<{POST_SNAPBACK}>

As I previously said you will have to be a non resident for 5 years and in the 6th year at the time that you dispose of your property you must also have non resident status otherwise you could be liable for CGT.

[loong]

As I previously said you will have to be a non resident for 5 years and in the 6th year at the time that you dispose of your property you must also have non resident status otherwise you could be liable for CGT

So following that line of thought, someone who has NEVER benn a UK resident can buy and sell properties without paying any tax on the profit?

[Pattaya_Fox]

As I previously said you will have to be a non resident for 5 years and in the 6th year at the time that you dispose of your property you must also have non resident status otherwise you could be liable for CGT

So following that line of thought, someone who has NEVER benn a UK resident can buy and sell properties without paying any tax on the profit?

<{POST_SNAPBACK}>

Totally a different thing.

Here you are talking about income earned from investment in propery.

This will be liable to Capital Gains Tax.

[sua yai]

Just caught up with this thread again.

Interesting posts. Are you saying that, as I've been here for 7 years on non resident landlord status, I could sell my property without going back and living in it for some time to claim it as my primary residence?

If so, that's good news for me. I had always thought that I would have to go back.

You sure about that?

As far as the 90 day rule is concerned, it's highly unlikely at the moment that you'll get nicked for transgressing. I think the point is that you must declare on your tax return that you havn't been back for more than that time. In the unlikely event that "they've got it in for you" and prove their case, your in trouble as you've given a false declaration.

[Ollie]

Re: Dawn's point abut letting her house to housing benefit claimants, the revenue has an automatic right to the details of HB payments made directly to Landlords, but I guess she is such a small player that they will not be interested.

I'm often amazed at the naivety displayed about the ability of the revenue and other Govt depts - and the private sector as well, think credit rating companies - to access, retain and share information.

[Pattaya_Fox]

Just caught up with this thread again.

Interesting posts. Are you saying that, as I've been here for 7 years on non resident landlord status, I could sell my property without going back and living in it for some time to claim it as my primary residence?

If so, that's good news for me. I had always thought that I would have to go back.

You sure about that?

As far as the 90 day rule is concerned, it's highly unlikely at the moment that you'll get nicked for transgressing. I think the point is that you must declare on your tax return that you havn't been back for more than that time. In the unlikely event that "they've got it in for you" and prove their case, your in trouble as you've given a false declaration.

<{POST_SNAPBACK}>

I assume that you are a British Citizen who purchased this asset before you left the Uk and that you have held non resident status outside the UK for over 5 full tax years and that the house in the Uk is not or has not been your main residence during this period.

If the above is correct then you should be able to sell the property free of Capital Gains Tax.

At the time of sale you should still hold UK non resident status.

[boris]

I have a house in the UK which I rent out and don't pay any tax on the income. You just need to fill in a form (forget its number) and declare yourself non resident. The only drawback of being non resident are that you cannot apply for certain UK investment vehicles etc.

<{POST_SNAPBACK}>

Rather puzzled by this - my accountant told me that income earned in the UK (e.g. rental of a UK property) is always liable to income tax. Quoting from the HSBC link in CMSally's post:

Q. Will I have to pay tax in respect of UK investment income earned while overeas?

A. You will be liable to tax in respect of investment income arising in the UK (e.g. income from a UK property, UK bank or building society, dividends from UK corporations).

Taxable rental income is calculated by deducting from gross rental receipts any qualifying business expenses, so long as they are incurred wholly and exclusively for the rental business and are not capital in nature (e.g. mortgage interest, management fees, repairs, insurance, rates, 'wear & tear' allowance equal to 10% of gross rent where the property is furnished).

If a property is held jointly with your spouse the income and expenses must be split equally between you and your spouse, and reported on each of your UK tax returns.

Letting agents (or tenants where there is no letting agent, and the rent payable is more than £100 a week) of any non-resident landlord must deduct basic rate tax from the landlord's UK rental income, and pay the tax to the Inland Revenue. Non-resident landlords can apply to the Inland Revenue for approval to receive their rental income with no tax deducted. (Note: This does not mean that the rent is exempt from UK tax.) * In return the Inland Revenue will usually ask the landlord to complete a Self Assessment Tax Return to calculate whether he or she has any liability to UK tax. This application is made by completing form NRL1,"Non-resident landlords - Individuals".

* My bold emphasis

<{POST_SNAPBACK}>

All this is completely correct.Interested parties should be aware there is a great deal of very misleading information being spewed out in this thread.Bottom line is that renting out a UK property is subject to tax.It is possible to get permission for yourself or agent to receive rent without deduction of tax.But whether you do or not, the profit (as defined. ie taking legit expenses into account) is subject to tax.

[cmsally]

All this is completely correct.Interested parties should be aware there is a great deal of very misleading information being spewed out in this thread.Bottom line is that renting out a UK property is subject to tax.It is possible to get permission for yourself or agent to receive rent without deduction of tax.But whether you do or not, the profit (as defined. ie taking legit expenses into account) is subject to tax.

Confirm the above. You fill in the non resident landlord form and when that is done your agent will not deduct tax before paying you the rent. You will get rent minus their fees and VAT. If you don't fill in this form they will be deducting tax of in my experience around 20%.

You will be charged income tax on your rental income and other income arising in UK unless below 4k

There can also be problems arising from charging less than market value rent and the paperwork from an agent makes good solid evidence as far as IR concerned, that rent was paid and amounts

Same goes if you are claiming expenses from reading IR website backwards, forwards and upside down!! seems no reason you can't claim travelling expenses as well as maintenance etc. Make sure you keep all the paperwork and if maintenance coincides with time you travelled all the better, you were there to supervise!