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Posted Tue, 27 Dec 2022 18:08:18 GMT by Dragan
Hi: For a non-domiciled resident is this correct when selling a real estate property (residential flat) abroad, and later reporting capital gain or loss for the sale on the UK tax return for that year: a) I can transfer the proceeds from the sale to a UK bank immediately after the sale, and there are no additional fees or taxes in UK related to that cash transfer from abroad. b) Regardless of whether there was a gain or loss I can transfer all gross proceeds from the sale to a UK bank. c) Regardless of whether I use remittance or arising basis for that tax year, and whether I use remittance or arising basis in previous or future years, the same procedures and rules apply to reporting this particular capital gain or loss, and to the related transfer of proceeds to UK. Thanks
Posted Tue, 03 Jan 2023 13:51:49 GMT by HMRC Admin 10
If you are declaring the sale of the proerty in the UK, you will only pay additional tax/capital gain if the rate in the UK is higher than what you paid in the country of sale.
Posted Thu, 19 Jan 2023 20:58:50 GMT by Dragan
Hi: This question is only about money transfer from abroad, not about capital gains. I only want to know am I able to transfer full cash proceeds from the home sale abroad to UK without paying any additional taxes in UK. For example, I purchased in Canada a rental property before I moved to UK. It cost base was 300K. If my total proceeds from sale are 350K can I freely transfer 350K cash to UK? If I sell for 250K can I freely transfer 250K to UK? I would report this sale on my tax returns in Canada and UK, and pay all taxes as necessary. My question is only about transfer of cash proceeds from Canada to UK. Thank you
Posted Tue, 24 Jan 2023 11:19:33 GMT by HMRC Admin 17

You will need to review the guidance at RDR1 (Residence, Domicile and Remittance) :

Guidance note for residence, domicile and the remittance basis: RDR1  )

and undertake the tests at RDR3. 

This will help you determine your residence position. 

If you are resident in the UK for tax purposes at the time you the sell the Canadian property and bring the proceeds to the UK,
you may be subject to captial gains tax in the UK in the tax year that you bring the proceeds to the UK. 

The guidance at :

Tax when you sell property  )    includes a calculator. 

All entries in the calculator should be in pounds sterling, using the offical exchange rate at the date of purchase and date of sale. 

The official rates can be found at :

Exchange rates from HMRC in CSV and XML format   . 

If a gai arises, this will need to be reprorted in a self assessement tax return  .

Thank you.

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