UK tax - tax for non-tax payers after selling house

[Jaylen Brit 0]

Not sure if

a. Everyone already knows this (I didnt! lol) or

b. It doesn't apply to you

but thought it was worth posting just in case.

IF you are currently a non-taxpayer through unemployment or HRP (looking after child at home, not working) then if you sell (or are bought out of your share of..) your PRIMARY RESIDENCE (the house you live in currently) you are not liable for UK tax on it.

If you do not intend to work in the USA, the Inland Revenue said they thought a person wouldn't be liable for tax there EITHER as it isn't EARNED money - but would count as personal savings.

Which is good news and another thing off my mind

Edited April 26, 2006 by Jaylen Brit

[mrswooten4ever 0]

That's great news cos it applies to me too! I've been at home for 4 years as I'm my son's registered carer.

Adele

[Linababe 0]

YEAHHH Great news I was wondering about all that too - thank you for posting this - where did you find this information??

Lina (UKC)

[Jaylen Brit 0]

I called Inland Revenue

The woman I spoke to was very helpful - she had to double check a couple of my queries with her supervisor because they weren't 'common' and she hadn't personally dealt with any enquires regarding them - which was fine by me - id rather the query took longer than was WRONG.

As a supplement to this; US savings INTEREST *is* taxable (the buggers!) although if you aren't working (or have a low wage) you can claim it back when you file taxes.

If you pay tax in the UK, (and have money there on which you would be taxed) and are liable for tax (normal tax) in the US they won't take it in both places due to a reciprocal agreement about not being doubly taxed.

This info is available on both the IR and IRS websites

[Linababe 0]

I called Inland Revenue

The woman I spoke to was very helpful - she had to double check a couple of my queries with her supervisor because they weren't 'common' and she hadn't personally dealt with any enquires regarding them - which was fine by me - id rather the query took longer than was WRONG.

As a supplement to this; US savings INTEREST *is* taxable (the buggers!) although if you aren't working (or have a low wage) you can claim it back when you file taxes.

If you pay tax in the UK, (and have money there on which you would be taxed) and are liable for tax (normal tax) in the US they won't take it in both places due to a reciprocal agreement about not being doubly taxed.

This info is available on both the IR and IRS websites

umm interesting - I get so confused with all te tax business - I dont have any savings account - well all the money has run out:( and I was gonna keep my nat west current account open when i move to US I think that earns interest but it is like pennies at the end of the month. What would happen if there was a large sum in the bank account and you get interest on it - a few measly punds i guess lol would I have to file for tax every april from america?? This is all so confusing:( - I spoke to my sister today and mentioned what you said about not paying tax if not working etc - she said something about capital gained tax which everyone has to pay if they sell property - now I know nothing about that.. do you? or anybody else??

So confused Lina (UKC)

Ps Maybe I should start a link where ppl can post things to do lists or something as I have no idea what I need to do when moving to america:(

[Jaylen Brit 0]

I asked about CGT and the woman I spoke to said not for a primary residence..and also under x amount (I cant remember how much tho - but it was a fair bit).

All I cared about was 'you don't have to pay any taxes' so I didn't enquire further, so might be best to call them if you're worried about CGT.