Capital Gains tax

lindal1000
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Capital Gains tax

Post by lindal1000 » Thu Aug 09, 2018 3:03 pm

So, having just sold my house in the UK thought I'd better get my head round the capital gains tax situation. I know that my first stop is to report it in the UK, and I am liable for any gain since April 2015.. so first surprise was that I only have 31 days to report it to them.. I'm sure last time I looked it was 3 months! My 31 days ends in 2 days time, so I was just in time, The only option seemed to be online reporting, so I started out.. if I ever thought that filling out a French form was complicated ..it is easy by comparison to this HMRC gobledigook.. I did the online calculator, but it comes with so many options and drop down menus it's hard to say what was the best option to use to calculate it.. Also.. I could only guess the value of the property in 2015 by looking at sold prices for similar properties in the area. So many things just seemed to be best guesses..and then you seem to have to transfer some figures into the reporting form..but not all, so I don't know whether they just take your word for the calculation of what you owe or whether they check it? I did (I think ) tick the option to defer payment until next years self assessment.. and as far as I can tell I can amend the form at any time up until then..but seriously ..not a very user friendly process at all..


Now for the French one, which I assume I have to do on next years tax form.

lindal1000
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Re: Capital Gains tax

Post by lindal1000 » Thu Aug 09, 2018 3:17 pm

And I just received another computer generated email from HMRC with a threatening tone..saying I must now send in my calculations unless I opted not to send them in, but if I didn't send it in then I would be fined. I sent it in!

Le Démerdeur
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Re: Capital Gains tax

Post by Le Démerdeur » Thu Aug 09, 2018 3:49 pm

Why 2015? Are you only liable from gains made after it became your 2nd home and/or you became officially non resident?

I presume its an obligatory but nonetheless voluntary payment and that you were paid the full proceeds by the conveyancers, is that correct?

lindal1000
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Re: Capital Gains tax

Post by lindal1000 » Thu Aug 09, 2018 4:13 pm

They changed the laws in 2015 so that overseas property owners have to pay UK CGT. For gains before that it was only due in France. You get a credit on your French impots for anything you paid in France. My solicitor did not deduct CGT but did say that I would be liable to pay it.

Le Démerdeur
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Re: Capital Gains tax

Post by Le Démerdeur » Thu Aug 09, 2018 5:19 pm

Looks like that has worked out well for you :good:

lindal1000
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Re: Capital Gains tax

Post by lindal1000 » Thu Aug 09, 2018 5:33 pm

Not sure it will make much difference. I still have to pay it France as well

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Andy72
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Re: Capital Gains tax

Post by Andy72 » Fri Aug 10, 2018 8:50 am

Linda

Will you get the UK CGT allowance? Also from your post do you mean that you will pay CGT both in France and UK with no double taxation allowance?

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Re: Capital Gains tax

Post by rabbit » Fri Aug 10, 2018 9:37 am

lindal1000 wrote:
Thu Aug 09, 2018 4:13 pm
They changed the laws in 2015 so that overseas property owners have to pay UK CGT. For gains before that it was only due in France. You get a credit on your French impots for anything you paid in France. My solicitor did not deduct CGT but did say that I would be liable to pay it.
Do you mean UK resident overseas property owners?

lindal1000
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Re: Capital Gains tax

Post by lindal1000 » Fri Aug 10, 2018 9:48 am

rabbit wrote:
Fri Aug 10, 2018 9:37 am
lindal1000 wrote:
Thu Aug 09, 2018 4:13 pm
They changed the laws in 2015 so that overseas property owners have to pay UK CGT. For gains before that it was only due in France. You get a credit on your French impots for anything you paid in France. My solicitor did not deduct CGT but did say that I would be liable to pay it.
Do you mean UK resident overseas property owners?
No, overseas resident UK property.
And yes, I should get my full CGT allowance in the UK and I won't be taxed twice, but I am still liable for some tax in France I think. As I say..It was the most complicated form I have ever done.

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Re: Capital Gains tax

Post by Debra » Sat Aug 11, 2018 12:31 am

Don't forget about the £40k letting allowance if you've had it let.

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