Transferring a large sum of money out of the UK

[Asterix]

Hopefully we'll be selling the house in the UK shortly and will be transferring the cash balance out of the UK to invest else where.

The cash will be made up of our initial investment, whatever has been paid off by the mortgage for four years and hopefully a bit more in the increase in value.

I haven't lived in the UK for many years and don't pay any tax, my wife is Indian. We have been registered as Non Resident Landlords while the house was rented out.

The increase in value portion probably won't be huge, around GBP 50k we think, but the total sum is reasonably large - well, it is for us!

Are there any issues or anyone we need to notify before transferring a large sum out?

[Lawrence5]

No should be fine - questions should come at the other end. UAE won't ask many aml questions - I got asked a few when transferring a 6 figure sun into a Jersey bank account...

Need to look into cgt though as you could have a liability

[Asterix]

Lawrence5 said:

No should be fine - questions should come at the other end. UAE won't ask many aml questions - I got asked a few when transferring a 6 figure sun into a Jersey bank account...

Need to look into cgt though as you could have a liability

Thanks for the reply.

As the property is both our names, I'm assuming that both our allowances would come into play.

Hoping is probably more likely.

Can fees etc... be offset against the sum?

I think I need an accountant to help with this.

[sumo69]

As a Non-Res Landlord, you must have been filing tax returns surely?

Are you tax resident in the UK?

I assume you are and that your a non-dom - if so the CGT position is as follows per the CGT manuals I use:

"If you are resident but not domiciled in the UK you are still liable to pay Capital Gains Tax on your chargeable gains on assets situated in the UK."

You would need to file the CGT pages and supporting calculations to HMRC for the tax year in which you exchange contracts for the sale - the completion date is irrelevent.

I know I have a vested interest in saying this, but do you have an Accountant?

David

[sumo69]

Asterix said:

Thanks for the reply.

As the property is both our names, I'm assuming that both our allowances would come into play.

Hoping is probably more likely.

Can fees etc... be offset against the sum?

I think I need an accountant to help with this.

Yes both would get a CGT allowance (so long as you are not being taxed on the Remittance basis) - currently £10900 each.

All legal, agents and stamp duty on purchase are allowed as costs.

PM me if you want to chat.

David

[Eric Mc]

How were you handling the rental income?

Was the property your main residence at any time during its period of ownership?

[Asterix]

Eric Mc said:

How were you handling the rental income?

Was the property your main residence at any time during its period of ownership?

The rental income came into our bank and the mortgage went out - was about the same amount. It sat empty for a few months here and there.

We've lived in Dubai for the full duration.

[Eric Mc]

Was the mortgage interest only or repayment?

[Asterix]

Thanks David - probably will do closer to the time.

I fully understand why free advice is free so more than happy to engage someone properly.
Would be good if I can do business with a fellow PHer.

[Asterix]

Eric Mc said:

Was the mortgage interest only or repayment?

Repayment.

[Eric Mc]

Were you making any profit on the rental income? Note that you can only deduct the interest content of mortgage repayments when calculating rental profits - not the full repayments.

Were you using a rental agent?

[Asterix]

Eric Mc said:

Were you making any profit on the rental income? Note that you can only deduct the interest content of mortgage repayments when calculating rental profits - not the full repayments.

Were you using a rental agent?

Slight loss when we were on fixed rate, slight gain when we came of that - a few hundred a month at most.

Yes - we had a rental agent. Also paid maintenance and upkeep costs on the house through the last three years.

I haven't done a tax return since I left (early 2004) as I didn't have any assets until we got the house in late 2009 - split equally between my wife and I. Never really made any money on the rent, plus there were quite a few months when there was no rental income.

[Eric Mc]

Your agent probably set you up on the Non-Residents Landlord Scheme.

http://www.hmrc.gov.uk/international/nr-landlords....

Maybe you should check with them as to how they handled this issue for you.

[Asterix]

Eric Mc said:

Your agent probably set you up on the Non-Residents Landlord Scheme.

http://www.hmrc.gov.uk/international/nr-landlords....

Maybe you should check with them as to how they handled this issue for you.

That's the one. The rent received didn't have any tax deducted by the letting agents(apart from the first payment we received as the paperwork hadn't gone through in time) and it would fall under our personal thresholds as it would be split between my wife and I.

[sumo69]

Asterix said:

Thanks David - probably will do closer to the time.

I fully understand why free advice is free so more than happy to engage someone properly.
Would be good if I can do business with a fellow PHer.

Cheers Asterix - look forward to hearing from you.

One query - HMRC accepted you under the Non-Resident Landlord Scheme but didn't issue tax returns?

David

[Asterix]

sumo69 said:

Asterix said:

Thanks David - probably will do closer to the time.

I fully understand why free advice is free so more than happy to engage someone properly.
Would be good if I can do business with a fellow PHer.

Cheers Asterix - look forward to hearing from you.

One query - HMRC accepted you under the Non-Resident Landlord Scheme but didn't issue tax returns?

David

Yes - nothing issued that I know of and they would have had our up to date contact details, things like email and phone haven't changed at all over the period.