HMRC Admin 5 Response

Hi 

If you dispose of the overseas property, while you are resident for tax purposes in the UK, you may find that you have capital gains tax to pay on disposing of the property.  
To work out if there is a capital gains, will mean that you need to be able to convert to pounds sterling, your acquisition costs and your disposal value and costs, using a just and reasonable exchange rate in place at that time.  
Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal.  
For your convenience, there are exchange rates at
https://webarchive.nationalarchives.gov.uk/ukgwa/20231016190054/
Exchange rates from HMRC in CSV and XML format
and for older rates at
https://webarchive.nationalarchives.gov.uk/ukgwa/20100202113554/
Exchange rates from HMRC in CSV and XML format.
You are free to use any of the supplied rates or one of your own choosing.  You may find that you are also entitled to claim private residence relief, when working out your gain.  
Have a look at HS283 Private Residence Relief (2023).  
There is a calculator at Tax when you sell property, which will help you work out your gain.  
This should be reported on a self assessment tax return.

Thank you

Hi

No.  Your wife's tax affairs are entirely separate to yours.  She does not need to use the remittance basis, if you choose to use it.

Thank you
 

Hi

Please refer to guidance at HS345 Pension savings — tax charges (2023).
As the due date for 22/23 was 31/01/24, it is likely that interest and penalties will be charged on any additoinal tax that is due.

Thank you

Hi

From the UK, there are no income tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends.
These would then potentially be subject to tax. Further guidance can be found here (Tax on savings interest and Tax on dividends).  

Thank you
 

Hi 

Please refer to guidance at Tax on your UK income if you live abroad and associated links.

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Hi

As you never lived in the property you would also need to consider any capital gains that may be due when you sold the property as you need to take into account the actual market value.
Your parents will now also be liable as it has not been their only or main home.  They will use the market value as the cost price and if the property is in joint names, all figures must be split 50/50.

Thank you

Hi Frank Biganski

From the example, the back pain is from a previous employment and not the actual self employment. the medical expenses are therefore not related to the self employment being done and therefore are not claimable.

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Hi Angie

No. a tax return is for that particlar year only and if you need to declare income from previous years also then you need one for each year

Thank you

 

Hi 

There are no income tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends.
These would then potentially be subject to tax. Further guidance can be found here (Tax on savings interest and Tax on dividends).  

Thank you

Hi

HMRC cannot comment on future events as legislation and/or plans may change. for current guidance please refer to RDR3 Statutory Residence Test

Thank you