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Capital Gains Tax

International real estate is quite a complicated process when it comes to taxation. Investing in real estate in prosperous regions around the world can be a great way to make money, but it can ultimately have an impact when you consider some of the taxes you may have to pay on any real estate sale. 

 You may have to pay a capital gains tax if you sell real estate overseas. If you are a US citizen and have just sold the property in the UK, you may be required to repay US capital gains tax and any other UK tax on the sale of the property.

What is capital gains tax ?

Capital gains tax is an amount of tax applied to a sale after selling a significant asset or real estate. This capital gains tax is often levied after selling a significant investment such as a stock or real estate. Chances are you paid taxes on the cost of your home or the asset you purchased upfront, but after it's sold, you'll be responsible for paying taxes on the adjusted cost base of the support after it has been appreciated.

How property prices in UK differ from prices in US?

Property prices in many places in the UK can be much higher. If, for example, you live in central London, you could get a real estate investment and make a lot more money than selling a house in the middle of Florida. Property prices are so different in the UK and inflated by a favorable exchange rate that you may be required to pay an even higher tax on overseas sales of UK property. 

 When you sell a property in the UK, you may have to pay capital gains in the US for the incoming income you will have in the appreciation of the property in the UK. This means paying extra for the exchange rate between the British pound and the US dollar, as well as additional income on a property that could be worth considerably more than anything in the US.

We provide advice on implications of capital gains tax of selling your property in UK

As UK capital gains tax experts, we want to give you the best advice on selling your property and how to avoid paying high tax when selling. We want to make sure you are armed with the proper knowledge to prevent excessive taxation on your overseas property.