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Posted Sun, 03 Apr 2022 22:51:29 GMT by Dragan
Me and my wife moved to UK a couple of years ago. We are non-domiciled in UK. One of use uses remittance, and the other uses arising basis. At the time of our move to UK we owned an overseas real estate property (flat) that has been rented out. Now we want to sell it. We know that we could transfer tax free our money from overseas to UK only if it was owned by us before the move to UK. Can we also transfer cash proceeds from this sale tax-free to UK? Does it depend on remittance vs. arising basis? Can we transfer only the amount that the property was worth at the time of our move to UK, or can we transfer all proceeds from the sale, assuming we pay capital gains tax on the sale abroad and in UK.
Posted Wed, 06 Apr 2022 10:50:07 GMT by HMRC Admin 10

If an individual is taxed on the Remiitance Basis, foreign income and gains are only taxed in the UK when they, or amounts ‘in respect of’ or amounts ‘representing’ those income or gains, are ‘remitted’ to the UK.

If foreign income and gains remain offshore and are never regarded as remitted to the UK, the tax charge is effectively deferred indefinitely.

Therefore,if you are taxed on the Remiitance Basis, the transfer to the UK of any money arising from the sale of an overseas property would be regarded by HMRC as a taxable transaction.

Remittance Basis: Introduction to the Remittance Basis: Overview of the Remittance Basis regime: What is the Remittance Basis?     


Posted Wed, 06 Apr 2022 11:53:56 GMT by Dragan
To rephrase your answer, if I am using remittance method I don't need to report the sale in UK, and I can't transfer any sale proceeding to UK tax-free. If I choose arising basis for the year can I transfer proceeds to UK tax-free? Can I transfer all proceeds, or just the amount of the property value at the time I moved to UK. To clarify, this question is not about capital gains, it is just about cash transfer from abroad, and how much cash I can transfer to UK tax-free.
Posted Fri, 08 Apr 2022 12:22:44 GMT by HMRC Admin 10

If you are resident and domiciled (or deemed domiciled) in the UK, you will pay UK tax on the arising basis.

This means that you pay UK tax on your worldwide income and gains for the tax year in which they arise.

It does not matter whether or not you bring the foreign income or proceeds from foreign gains to the UK.


Posted Fri, 08 Apr 2022 22:16:23 GMT by Dragan
Let me narrow down my question. I am a non-domiciled resident filing taxes on arising basis. I moved to UK two years ago from Canada. At that time my flat in Canada was worth 200K. I will sell the flat this year for 250K and pay capital gains in Canada and UK as needed. My question is: how much money from this sale I can transfer to UK tax free: 0, 200K or 250K?
Posted Tue, 12 Apr 2022 10:41:26 GMT by HMRC Admin 17

To the extent you are UK resident and have not been claiming the remittance basis (while UK resident), you will taxable
on worldwide gains in the tax year in which these arise and should declare these on their tax return where appropriate..

They would report the gain from the flat in the year of disposal and there are no tax consequence when proceeds are transferred:

Capital Gains Manual    .

Thank you.
Posted Tue, 12 Apr 2022 11:03:52 GMT by Dragan
Sorry, but this is not what my question is about. My question is not about capital gains. It is only about cash transfer. The only question is how much cash from abroad I can transfer to UK tax-free in this case. I am aware that I could transfer all cash I had in possession abroad before my move to UK, and that any cash transfer on earnings after my move to UK is taxable. The unclear detail here is that I had property, not cash, in my possession before my move to UK. Now that I sell that property after my move to UK can I transfer the cash proceedings from that sale tax-free to UK, Suppose there are no capital gains.
Posted Wed, 13 Apr 2022 10:24:34 GMT by HMRC Admin 17

If you are a UK resident you must declare your worldwide income. 

Therefore any sale of a property abroad should be declared to HMRC for us to review a possible capital gain on this disposal. 

Once this has been declared on Self Assessment any cash proceedings do not need to be declared when you transfer the amounts to
UK bank accoount and this has already been declared on your tax return form.

Thank you.

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