joyce6557

Hi, I find that there are two bank details for overseas payments to HMRC. One is payments to HMRC Cumbernauld (account no. IBAN GB62BARC 20114770297690). The other one is payments to HMRC Shipley (account no. IBAN GB03BARC 20114783977692). Both account's Bank identifier codes (BIC) are the same BARCGB22. The payment references are the same as well. Would you please advise which account I should make the payments to , the Cumbernauld or Shipley? Or, I can choose either one of them to make the payments to? Many thanks in advance for the answer.

Dear Admin, I have read the 'tell HMRC about capital gains tax on UK property or land if you're not a UK resident' already before posting the first thread. And it is because I have read it and therefore I found the button 'Report a disposal' does not work for non UK resident. The button and its thereafter actions are good for 'trust' and 'estate' only, while I am an individual. Hence, I seek for your advice. Can you have any other advice so that I can report the disposal vide the 'Report a disposal' according to the said guidelines, please?

I am an overseas owner owning a residential flat in UK. I sold the flat and understand that I have to report and pay any capital gains tax within 60 days of the selling. Please note that I filed my self assessment tax return and paid property income tax under a 'business account' in the past years. Please also note that I could not open a 'personal tax account' when I first filed the tax return in the very beginning some years ago since I am an overseas owner who does not have any national insurance number. I also wish to point out that I am not a trust or estate, I am just an individual. I visited the HMRC online page and wanted to understand the selling and file capital gains tax form. I tried to use the 'Report a disposal (https://www.tax.service.gov.uk/capital-gains-tax-uk-property/start' as contained under the guidance page 'Tell HMRC about Capital Gains Tax on UK property or land if you're not a UK resident'. The operation of the 'Report a disposal' button is as below:- (Step 1)This is so you can:1.Create a Capital Gains Tax on UK property account for your trust or estate. [yes or no] 2.Report your CGT on UK property sales or disposals for a trust or estate. [yes or no] (step 2) Do you want to report a capital gain for a trust or estate? [yes or no, and I ticked no] (step 3)You’ve tried to sign in as an organization Trusts are the only organisations that can use this service to report Capital Gains Tax on UK property. You have told us you are not a trust so you’ll need to file a Company Tax Return to report any taxable gains on UK property. {P.S. If I tick yes for step 2, I will be asked in step3 to provide a trust or estate number to which I do not have cos I am not a trust or estate at the outset.} You can see from the above that 'Report a disposal' page operation is just good for property disposal for a trust or estate. Otherwise, you have to file a Company Tax Return. Being an overseas owner under self assessment not under company tax return, although I really want to follow the HMRC requirement to report the disposal, unfortunately the system does not work for us. Do I really need to file a company tax return and how to file such company tax return, just because I want to report the property selling? Please advise how I can complete the disposal report. As an additional reference, I note from a post by lou D under the thread that 'unable to declare capital gains tax as person tax account being linked to business account' in this Capital gains tax forum that, his invented fixing method is to create a new personal tax account so as to get the UK property account number. However, as mentioned above, being an overseas owner, I was denied at the very beginning by the HMRC system to open a personal tax account because I have no national insurance number. In this regard, the way to create a new personal tax account is not applicable to me. Again, how can I fix the problem and report the disposal, please? Many thanks for your advice in advance.

Many thanks for your advice at first. I have read the link of capital gains tax, However, I am not sure about how to fill in the 'value when you sold the property'. Unlike the item of 'value when you bought the property' in which it is clearly stated that I just need to fill in the respective share of the property that I own, the 'value when you sold the property' does not specify if I should put in the share amount that I own. I own the property under joint-tenant ownership, hence I only got 50% share. Should I fill in the half value of my sold property or the full value? Say, if the property is sold at £700,000, then should I fill in £350,000 or £700,000? I suppose it should be £350,000 not £700,000. Please advise. One more question please, I think my second payment of £872.30 should fall on 31 July 2025, but not 31 July2024 as stated in the first paragraph of your above advice, since by 31 July 2024 the deadline for submission of tax return has not yet due, hence I should not be charged for the tax amount that has not been reported. Many thanks for your advice again!

For an overseas non resident owner owning a flat for letting out, could such letting be regarded as a rental business noting it is a flat not a house and only one flat is involved?

I am an overseas non resident property owner. I owned a letting apartment and used an online tax filing software to file the tax return for 2023-2024. According to the calculation listed in SA110, the amount of tax I need to pay is £1744.60.This is the first time I need to pay a tax over £1000 arising from the rental received from my letting apartment. To my understanding, I have to make 2 payments on account. The first payment is £2616.90 due on 31.1.2025. the second payment is £872.30 due on 31.7.2025. My question is as follows: (1) the total payment as listed in SA110 is £2626.90 + £872.3 =£3499.20. This £3499.20 doubled my tax payable £1744.60. Isn't this calculation correct? If yes, then I need to pay double tax amount to cover the estimated tax payable £1744.60 for the period of 6.4.2024 - 5.4.2025 . (2) I am thinking to sell the apartment. If I could successfully sell out the apartment in 2024 (after 5.4.2024), say in Sept 2024, as I have paid the whole 2024 -2025 tax £1744.60, how can I claim back the surplus that I have overpaid to HMRC? Please note that I have no British bank account and I made the tax payment to HMRC vide my expat bank account. How can the HMRC refund the money to me? (3) After selling my apartment say in Sept 2024, do I need to file the tax return for the period 2024 - 2025 and the years thereafter? Can I close or cancel my HMRC tax account? If yes, by what means can I make it? [Hope you would understand that it cost money to file the tax return in the HMRC recognized tax software and it is a very complicated work for me to file the tax return every year. ] Many thanks for your help and advice in advance.

I read from the threads that the solicitor fee for buying and selling the property could be deducted when calculating the capital gains. My flat was bought 7 years ago, could I still deduct the solicitor fee for buying the flat which was 7 years ago? Is there any limitation on the year applicable? Please note that I have never treated /deducted the said buying solicitor fee as expense when calculating/submitting the rental property income return during these years. Do I need to produce the said 7 years ago solicitor fee receipt to support my claim for deducting the capital gains when I sell the flat, please?

I refer to your above saying of 'If you total allowable expenses exceed the amount of the gross rental income then this would just be treated as a loss which could be carried forward to a later year to set off against any future rental income profits.', is this applicable to overseas non residential owner? My tenant did not pay me rents and I have spent much money to get him out. Whether the legal fees I have spent also accounts for the allowable expenses? If yes, then putting all other expenses including the apartment estate management fee and letting agent fee, I suffer a loss and will this loss be carried forward to a later year and how many years can the loss amount be carried through? Many thanks in advance.