Selling your overseas property...

overlandrover

Sorry if this is posted in the wrong area, but here goes anyway.


Two years ago I bought a plot of land on the island of St Kitts in the West Indies. The investment was sound, and in the long term prices are set to rise there. Ultimately I would like to have built a house on the land.

However, the recession has meant I need to liquidate my assets, and with the weak pound it is a good time to bring cash back into the country.

All being well, I might be able to sell the property by the end of the summer, or perhaps by Christmas 2009. When I sell, I will need to pay 10% of the sale price to the St Kitts government.

Will I also be taxed for bringing the proceeds into the UK? I understand there is a double taxation agreement between the UK and St Kitts, and that I may be able to get tax relief.

What are the options for bringing the money home? Should I open an account on St Kitts and leave the funds there, only withdrawing smaller amounts when I need to? Or just bite the bullet and get it all back in one lump?

Thanks in advance for your advice.

laponderosa

I too also live in Europe and double taxation rules apply here. However my laymans understanding is this = as long as you ARE paying tax in one of the locations you will not be taxed twice - BUT - as with all HMRC enquiries ask them and be sure to get and keep their written reply. I also think you have to make a tax declaration in the country where you are NOT paying tax.
Hope you find that of some use?

laponderosa

One other thing - Movement of cash - amounts over a certain limit, which I think is £10.000 pounds MUST be declared via customs.
You will see advice about this posted at airport check in counter areas