any tax on selling land abroad

cv65user

My friend is so confused.
He resides in UK but He has "rights to a land" abroad (not in EU) it is from an old law of being an indigenous farmer. He is interested in selling it and if someone offers him 100,000.00 for it (in three instalments over the course of 1 year).

male indigenous villagers have had the right (since 1973) to receive a plot of government land on which to build a small house (2100 sq ft max, usually arranged in 3 floors). the policy was intended to help farmers out by ensuring their families had somewhere to live.

When he gets the cheque he will open an account and put the lump sum in .

He currently is not claiming any benefit and is working full time employee.

When he BACs/CHAPs ( or what ever cheapest method) that amount from foreign bank (they have HSBC over there) back into say UK HSBC.

Will it trigger a tax check or security check? because it will be a large sum out of ordinary? Or what will happen ?

antrobus

It depends on whether your UK resident friend is also domiciled in the UK or somewhere else and whether he's ordinarily resident or not. It could be that the simple act of moving the money into a UK bank account would trigger a tax liability.

See, for example:- http://www.hmrc.gov.uk/migrantworkers/tax-non-uk.htm

cv65user

right OK . He is british citizen (born in UK) and he also has right of abode in his country.

that is his question. I just did not know how to explain it. So, would a large deposit from (oversea) account trigger an investigation /tax visit.

xylophone

http://www.hmrc.gov.uk/cgt/intro/when-to-pay.htm

cv65user

good point so only an asset . not sure if mines an asset now

corky2

When he disposes of the right to the property/land that is a disposal of an asset for UK capital gains purposes.
NB: In the UK we are under self assessment so you have to self assess i.e. not wait until HMRC "spots the proceeds!"