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Overseas property sale.. avoiding UK tax
jadc24
Posts: 9 Forumite
My father in law has a property in the Ukraine he wants to sell with around 100k profit. He wants to then buy another property possibly in Cyprus. A few questions here... 1. Is he able to put the funds from the sale into a Ukranian Bank account and if so can it be opened from the UK as he does not need to go back to the Ukraine to complete the sale.... 2. If this is possible, will he pay any tax/penalty in Cyprus (or wherever)... 3. We are assuming that if the money comes back to the UK he will be liable for tax on the profit.
Any ideas on how to get round this?
Any ideas on how to get round this?
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Comments
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It doesn't matter where the money goes, it depends on where he is "ordinarily resident" as far as UK tax is concerned IIRC.A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
He is resident in the UK but will he pay tax in whichever country he transfers the money to?0
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As far as I'm aware, he's liable to pay capital gains tax to Gordon Brown on the sale if he's resident in the UK, but can probably offset any tax paid on the sale abroad against it.
If you're asking how to evade tax, I doubt anyone is going to help you break the law.0 -
Go to Cyprus and talk to some accountant/lawyers out there, they are a known tax haven. After all, a large proportion of Abramovic's businesses are in or via Cyprus. They are very aware of anti money laundering though, so be above board from the outset.0
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He is not trying to evade tax, it just seems pointless bringing the money into the UK and paying up to 40% on it, when it may be possible to just fund a new property abroad in the first place.0
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As a resident of the UK, prima facie he is liable to uk tax on any capital gain. However, cross border tax is always more complex than single country tax, and to really find out the answer he should get specialist advice. Whether or not the cash is remitted to the UK is generally irrelevant.
Does he know if he has a tax liability in the Ukraine? Is there wittholding tax on the remittance of funds?
He should be aware that if HMRC find out that he hasn't declared something which he should have, their investigatory powers are quite rigorous. It could well cost him more in professional fees than the tax would have done in the first place. This is all on top of the penalties!I can spell - but I can't type0 -
get an accountant and get some real advice .........
no offence whatsover intended to any MSE contribs - we have no idea of the party's financial status etc0 -
We paid all required costs in Spain when we sold our place there a few years ago. We had the money transferred to our UK Bank Account and then invested the money...end of..........0
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