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Tax on money transfer from EU country (Romania) UK

Tax on money transfer from EU country (Romania) to UK

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In live in UK for more than 3 years and work as a health supporter for a total income of around 18000£ per year and paying taxes. I live in a share house and manage to save a bit and I am in the process to sell my only property from Romania which will worth around 30.000£. I do plan to transfer it I my bank account from UK and apply for a mortgage.

My Questions is: Do I need to pay taxes to HM Revenue & Customs for that 30.000£ after I will process the transfer and how much will be? Is any chance to do anything legally in my benefit or any advice you have for me? Thank you !!!

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By Matrix
29th Jan 2020 20:24

In the first instance the gain on the property is taxable regardless of whether you bring the cash into the UK. How much did the property originally cost? Did you pay tax in Romania?

There are different rules assuming you are non-domiciled which make it more complicated so you may wish to go an accountant with knowledge of both Romanian and UK tax.

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By Valentin
29th Jan 2020 20:46

Sorry for my ambiguous questions. I amend post by asking if I need to pay taxes to HM Revenue & Customs in UK, because in Romania I already payed.

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By Matrix
29th Jan 2020 21:20

Yes I know, I was asking my questions to help you work out if there is any UK tax.

Please can you answer the first question then - what was the original cost of the property?

Any Romanian tax already paid should reduce the UK tax, if any, this is why I asked.

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By Valentin
29th Jan 2020 21:29

10 years ago when I did a mortgage for my property was around 45000Euro and I was paying upfront 25000Euro and now I sell it for 50000Euro and after pay the bank the difference my share will be approximated 30000£ after conversion and other costs.

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By Wanderer
30th Jan 2020 01:19

Valentin, forgot over complicating all your figures with the mortgage details and the amount you will transfer, just initially give figures for:-
a) What the property originally cost.
b) How much it is to be sold for.
in Euros.
You might be saying a) is 45,000 and b) is 50,000 but clarity is fundamental.
Also when did you buy it? You've only given an approximate date for when you did a mortgage.

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panda ketteringUK
By ketteringUK
29th Jan 2020 20:39

you should be able to transfer the whole £30K however you might need to be aware of:
1. Money Laundering rules - your bank might want to see the proof that those funds are from legitimate source. It is worth perhaps advising your UK bank that there will be a large transfer coming in. Otherwise you risk a chance that SAR will be filed. Go to your local branch and speak with someone from customer services and advised them on what you're planning on doing
2. You will definitely need documents confirming the sale of you Romanian property for the conveyancing solicitor. Perhaps worth having it translated to English by a sworn-translator
3. Be careful with the international bank transfers. Some of the high street banks charge hefty fees. It might be worth opening even an EURO account in UK (Starling bank fees are very good and have full FCA protection)
4. Do not use Gram or other corner shops for transfer. £30K it's a lot of money
5. Worth getting a mortgage broker. Most reputable ones dont charge any fees
6. Check your romanian law in case if you have to pay any tax there after selling the house

Good luck and hopefully you will have your, looked after casa here in UK! This country needs hardworking people, especially in nhs and social care.

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By Ramcri
30th Jan 2020 00:11

Hi Valentin
You 1st have to be fiscal resident in the UK. Working here full time is not sufficient. There are steps to remove yourself from Romanian HMRC (finante) and then the UK law applies.
It's fine to transfer money from a property sale to the UK and as long as you keep a copy of the Romanian notary document, you'll be fine.
Taxes: you have to include capital gains in annual self assessment in the UK (difference between sold price- clear expenses in buying the property, fees, taxes, etc). Then you have a capital gain exemption, what is over, is taxable.https://www.gov.uk/capital-gains-tax/rates

Best thing to do is to talk to an accountant in the UK who can assist you with paperwork and can look into details you might have left out.

I've replied based on my personal experience, I'm not an expert

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