Paying Capital Gains On A Foreign (U.K.) Property
Hello,
We rented out our home in London when we came to work in the US temporarily 8 years ago. Temporarily has become permanently, and we have bought a house here now too. We are thinking of selling our house in London, which is still being rented out, but are not sure if we will have to pay capital gains tax on the sale, and if so how much.
Thank you! Ingrid
Dear Ingred,
I think you should address your remarks to that very charitable organization called in Great Britain, The Inland Revenue!!
They are the same as Internal Revenue is in this country but with a much better accent.
My properties in England now passed on to my many ungratful children were the subject of what I called, The Great Game. I declared my residency in England to avoid United States Tax and my residency in United States to avoid the taxes due Inland Revenue.
Rather interesting, although born and raised in the United States, I lost my citizenship by virtue of joining the RAF prior to Americas entry into WWII. They came out to my airbase and demanded my passport. I gave them a long speech about the present peril to Western Civilization etc. etc. all the while trying to tear up my passport so I could pass it to them in many little pieces. Well that passport was tough and would not tear up. My Commanding Officer at the time Lord Sholto Douglas could not stop from laughing. The two officials from the Embassy did not.
In any case a few years latter the Battle of Brit having been won, America came into the fray and of course wanted me to come fly for them as they had no experienced fighter pilots, which I did. They did give me a new passport but I in a moment of quiet revenge have never paid them a dime on the taxes due them for the income of my little house in Saffron Waldon.
My suggestion is that you do the same.
Tdallyho, er Cheers, Lucius
Are you planning on getting out of England altogether, or reinvesting in England elsewhere? You can exchange foreign property for foreign property pursuant to Section 1031 of the IRC if you are so inclined. If you are getting out of England, I do not know what the applicable tax laws are.