Capital Gains Tax Liability For Overseas Aunt?

by Readers Question

16:37 PM, 27th May 2017
About 2 years ago

Capital Gains Tax Liability For Overseas Aunt?

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Capital Gains Tax Liability For Overseas Aunt?

An elderly aunt of mine bought her parents house under RTB many years ago. She then moved to Italy and allowed her sister to live in the house. My aunt want to sell the house.

Some questions arise

1. What tax considerations does she need to address? Im concerned that given she has a primary residence in Italy that she might be liable for CGT on the sale of the house in the UK
2. If she is liable, would the calculation be on the discounted price under RTB or of the pre-discounted price?
3. If she were to buy another house in the UK would she be liable for the additional 3% on the purchase as its a 2nd home.
4. Are there any other issues I have overlooked?

Many thanks

Steve 



Comments

Mark Alexander

16:42 PM, 27th May 2017
About 2 years ago

Hi Steve

In answer to your questions:-

1) Yes I agree that your Aunt may be liable for CGT in the UK. She may also be liable for tax in Italy and should also check that.
2) The tax would be due on any increase in the property value since April 2015. HMRC have a very useful online calculator for assessing the capital gains tax liability for non-residents - see >>> https://www.tax.service.gov.uk/calculate-your-capital-gains/non-resident/
3) Please seek advice from a solicitor
4) Possibly. Your Aunt would also need to check her tax position in Italy.
.


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