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Selling - what are the taxes when living out of the country?
MarieAAP
Posts: 278 Forumite
Hi Folks
A bit of background I think will make this easier to answer the Qs. (hehe beware of the essay)
Mum has been living / teaching English in China for the past 4 years until her pension kicks in, and is due back in the country in March in time for my wedding. Her pension is due to start June / September respectively. She bought the house in 1990 and is valued at £285k circa. She has been renting it out and receives approximately £3k net / year. She currently has no tenants as they are moving out this week, and the estate agents are not hopeful to find someone to move in before Christmas. They have however, received an expression of interest in the property….and this is where it makes things intriguing :j
The original plan was for mum to move in with me and my OH until the wedding in May, look after the kitties whilst we are on our honeymoon, and be out once we come back – umm Mums and newly weds…. The house would still likely be rented (6 months lease). She has been offered a room at friends, and would ideally use the time to find another property in Yorkshire (near me), buy a motorhome, see old family / friends etc. She will be getting no income until the pension kicks in, but does have some savings to live off etc.
Qs are:
When is the best time for her to sell the property?
· Put it up for sale as soon as she’s back in the UK and rent / live elsewhere?
· Live in her old home for 3/6 months and look for another home (will that reduce paying xxx taxes?)
· Sell it to someone who has expressed an interest and is a cash buyer?
What sort of taxes will she get hit with if she doesn’t move in eg capital gains, not living in the country etc. Does there have to be a minimum length of time?
Mum is planning to try and get an independent valuation from another estate agents, to check the price is a good un.
The buyer is in his 60s and already lives in the same village, and wants to stay there. So the chances of finding another 120yr old 3 bedroom stone cottage in the same village within the next couple of years, well I wouldn’t take that bet.
Now obviously the fact he is a cash buyer, and she will become a cash buyer is a huge advantage in this current market, as mortgages can be so difficult to get. She is planning on her new place being a mortgage free property. I guess I am really trying to find out what are the negatives in selling it now = especially as the tax man might hit her with a double whammy.
Thanks all for your suggestions
From a worrying daughter.
Marie :rolleyes:
A bit of background I think will make this easier to answer the Qs. (hehe beware of the essay)
Mum has been living / teaching English in China for the past 4 years until her pension kicks in, and is due back in the country in March in time for my wedding. Her pension is due to start June / September respectively. She bought the house in 1990 and is valued at £285k circa. She has been renting it out and receives approximately £3k net / year. She currently has no tenants as they are moving out this week, and the estate agents are not hopeful to find someone to move in before Christmas. They have however, received an expression of interest in the property….and this is where it makes things intriguing :j
The original plan was for mum to move in with me and my OH until the wedding in May, look after the kitties whilst we are on our honeymoon, and be out once we come back – umm Mums and newly weds…. The house would still likely be rented (6 months lease). She has been offered a room at friends, and would ideally use the time to find another property in Yorkshire (near me), buy a motorhome, see old family / friends etc. She will be getting no income until the pension kicks in, but does have some savings to live off etc.
Qs are:
When is the best time for her to sell the property?
· Put it up for sale as soon as she’s back in the UK and rent / live elsewhere?
· Live in her old home for 3/6 months and look for another home (will that reduce paying xxx taxes?)
· Sell it to someone who has expressed an interest and is a cash buyer?
What sort of taxes will she get hit with if she doesn’t move in eg capital gains, not living in the country etc. Does there have to be a minimum length of time?
Mum is planning to try and get an independent valuation from another estate agents, to check the price is a good un.
The buyer is in his 60s and already lives in the same village, and wants to stay there. So the chances of finding another 120yr old 3 bedroom stone cottage in the same village within the next couple of years, well I wouldn’t take that bet.
Now obviously the fact he is a cash buyer, and she will become a cash buyer is a huge advantage in this current market, as mortgages can be so difficult to get. She is planning on her new place being a mortgage free property. I guess I am really trying to find out what are the negatives in selling it now = especially as the tax man might hit her with a double whammy.
Thanks all for your suggestions
From a worrying daughter.
Marie :rolleyes:
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