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First Time Buyer with Foreign Investment

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Comments

  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    csgohan4 wrote: »
    Just out of curiosity, how will the HMRC know you own or co own a property outside of the UK without you declaring so?
    Apart from the minor detail of your SA tax return, y'mean?
  • Bob_Bank_Spanker_2
    Bob_Bank_Spanker_2 Posts: 183 Forumite
    csgohan4 wrote: »
    Just out of curiosity, how will the HMRC know you own or co own a property outside of the UK without you declaring so?
    The property income and Foreign Tax Credit Relief on the OP's self assessment would be a pretty huge giveaway....
  • csgohan4
    csgohan4 Posts: 10,607 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    AdrianC wrote: »
    Apart from the minor detail of your SA tax return, y'mean?

    Assuming they file Tax returns :)
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    csgohan4 wrote: »
    Assuming they file Tax returns :)

    or that different departments within HMRC communicate with one another.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    csgohan4 wrote: »
    Just out of curiosity, how will the HMRC know you own or co own a property outside of the UK without you declaring so?
    In the same ways that they know (or don't) that you own a property within the UK.
  • gingercordial
    gingercordial Posts: 1,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    trilson wrote: »
    I understand the rule, I'm just questioning its implementation. I'll try to explain my frustration below.

    Person A owns both a property in the UK and a flat in France. They buy a second a property in the UK and sell their existing one. Because they have replaced their main residence, there's no additional fee.

    Person B (me) is in a similar situation, however with the disadvantage of not actually owning anything in the UK to begin with. Because I can't technically replace my main residence (renting isn't recognised), I'm stung.

    I've resigned myself to paying the additional charge, but question the way the rule has been designed.

    If you don't like it you have the power to write to your MP or the Chancellor to express your opinions. Watch out for any consultation documents from the Treasury and respond to those. Will this do much good? Probably not, but those are your routes for questioning how tax law is drafted.

    Tax doesn't always have to be 100%, scrupulously fair. It should aim to be fair, but it can only work as written and there will always be some people caught by unfortunate sets of circumstances.

    That said, you've got an investment in property. You are fortunate to be in that circumstance. You can now choose whether to dispose of that investment and save the SDLT, or pay the SDLT and continue to reap the rewards of your investment.

    France has a transfer tax (equivalent to SDLT) of about 5%-8% all-in depending on the department (county) and including the notaire's fees. There's also an annual wealth tax of a % of the value of your assets each year, if you're "unfortunate" enough to be above the €800k threshold for that, so they certainly have nasties in their tax regime which we don't have and vice versa.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    csgohan4 wrote: »
    Assuming they file Tax returns :)
    Well, if somebody's prepared to lie to the tax man in order to evade tax for one thing, then they might as well be hung for a sheep as a lamb.
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