Jake B Posted December 23, 2007 Posted December 23, 2007 Hi everyone, I have just sold a property in New Zealand. I am a UK citizen. I don't know if CGT is applicable to me. I know that CGT is not applicable in New Zealand so I naively thought that I would not need to pay UK tax either. However, I have a sneaking suspicion that the UK taxman will want some of the gain. Seeing as New Zealand does not want any of it, I don't see why the UK should want any of it, but could someone advise me please? Here are some numbers... Bought in March 2003 for $330,000 Sold in December 2007 for $555,000 Selling fees of $30,000 Council tax over 4 years $10,000 Capital gain after costs $175,000 (£66,000) Is UK CGT applicable? If so, is it applicable on the gain only (i.e. after costs)? If so, is taper relief available as I have held it for 4 years? All help greatly appreciated. Jake Quote
twatmangle Posted December 23, 2007 Posted December 23, 2007 Is UK CGT applicable? If so, is it applicable on the gain only (i.e. after costs)? If so, is taper relief available as I have held it for 4 years?All help greatly appreciated. Jake Is there any reason why you have to tell the taxman? Quote
microbe Posted December 23, 2007 Posted December 23, 2007 I am most definitely no expert, but your UK tax is on world income. Quote
twatmangle Posted December 23, 2007 Posted December 23, 2007 I am most definitely no expert, but your UK tax is on world income. Sure, but if they don't know about it..... Is the money in the UK already ? If it's in NZ, you could bring it back as gold, diamonds, etc. This is a hypothetical excercise, and no way would I suggest avoid any tax liability, no, no, no; no way. We have wars to finance, and a civil service to support. Quote
soldintime Posted December 31, 2007 Posted December 31, 2007 A few quick questions: Are you UK domiciled - were you born in britain to british parents. If not you could still benefit from some nondomicle rules. When you made the sale were you living in the UK? Quote
Bardon Posted March 13, 2008 Posted March 13, 2008 Many ozzie incorrectly thought that becasue there NZ properties were not subject to CGT in NZ that it wouldn,t be in oz. CGT for ozzie tx resident apply to any capitl gain anywhere. A way round it but maybe not in your case is to become a tx resident of NZ in the year that you sell. Quote
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