Money brought to the UK from Overseas House Sale +

Exempt, Double Taxation or what?

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I have a client who is a Romanian national, Romanian domicile but moved to the UK some 8 years ago to work in the UK. He had a house which he built in Romania which he has recently sold and the proceeds are still in a bank in Romania as this was his PPR there. In the UK he has always rented property but now wishes to purchase a property in the UK and so bring those proceeds to the UK as a deposit along with other funds which his father  (resident in Romania) has also saved for him.

My question is would moving the proceeds from the house sale and the gift from the father incur any UK tax at all? He is aware of MLR and that the UK banks would ask questions but surely selling a PPR and moving those proceeds to purchase another PPR in a different country would be exempt? The financial gift from the father I'm not too sure of either. He has all the paperwork to prove this is legitimate.

Any thoughts please?

Replies (3)

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By Tim Vane
19th Aug 2018 00:26

As ever you need to get hold of all the facts and do all the sums. You can’t expect us to give you any answers on the scant info provided. How is he managing to claim full PPR for a house he has not lived in for 8 years? What exemption are you expecting him to claim? Get precise dates and movements. Determine the precise amounts being remitted. Calculate whether the remittance basis would be more beneficial when bringing the gains into the UK. Will the Remittance Basis Charge apply and at what level? Etcetera etcetera etcetera.

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Replying to Tim Vane:
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By grahamstone1
19th Aug 2018 10:15

Thank you for your reply. I did not say he was claiming PPR relief and in fact nothing has been submitted to HMRC as yet. All I said was it was his PPR whilst in Romania. Agreed I need to get more info but only asked the initial question to get confirmation of what direction people thought I should proceed in!

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By Matrix
19th Aug 2018 08:33

You will need to calculate the gain in the usual way and offset any local tax already paid on the gain.

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