Tax on moving money from sale of home overseas to the UK

We are an expat couple currently living in the USA since 2016 and we plan to move back to the UK in 2 years. We aim to sell our primary home in the USA before leaving, pay Capital Gains in the US and transfer the money (~$400-$500K) to our UK account. What tax would apply ? We own 2 properties in the UK which are both rented out and we pay UK tax on the income.

Hi,

Unfortunately we cannot comment on future events as legislation and plans may change.

Thank you.

Hi, thank you Admin 32 I appreciate that legislation may change, however, to know what the current state is would be helpful - will you please confirm what would happen today?

Hi,

You may be subject to Capital Gains Tax on the USA property, if you return to the UK in the tax year in which it is disposed of. If this is the case, you would be able to claim a credit for up to 100% of the USA Capital Gains Tax paid.  

Have a look at the below for private residence relief, which may apply.

Private Residence Relief (Self Assessment helpsheet HS283)

Thank you.

Dear HMRC32 thanks so much that 's very helpful. May I clarify something under current rules? The house to be sold in the USA is our main residence, do the same exemption rules apply?

Hi Tina Starling,
If it is your main residence and has been for the whole period of ownership, no capital gain would be due.
Thank you. 

HMRC Admin I have land in Pakistan and I want to sold that to pay off my mortgage in the UK for my only residence. There are 4 land plots and roughly around £300k sale proceeds of 4 plots in Pakistan. I want to pay off my mortgage. I am 65 years old resident since 1994 and British citizen and tax payer in the UK. Do I need to pay any tax on this money from Pakistan in the UK? All taxes paid in Pakistan The land plots I hold did not generate any income.

Hi,

Yes, as this will be seen as a capital gain. You can see guidance here:

Capital Gains Tax: what you pay it on, rates and allowances

Thank you.