Thursday, February 4, 2016

Being a Grown Up

We owned a house in the UK up until a couple weeks ago. We finally sold it and will soon, all being well, be in a position to buy somewhere here in South Carolina. Of course, with selling a property, you have to deal with the tax implications. Being an expat we have to deal with the tax implications in the UK and here in the US. I discovered by chance that we have to inform HMRC within 30 days of selling the house or we can be fined. Luckily there is an online form we can submit ahead of doing our actual self assessment tax return later in the year. We have to inform them separately because we owned it jointly and sold it jointly. We have to work out what, if any, Capital Gains Tax we have to pay here and there. Luckily we can defer payment of the UK CGT until the end of January 2017, which as luck would have it coincides with our tax return for the US in which we have to declare the sale. I have looked for information regarding the US aspect of CGT and I have to say, I have done more fun things. If we have already paid CGT in the UK do we need to pay it again in the US? Is there a tax treaty between the countries where you don't pay tax twice on the same thing? We are seeing a tax expert in the next few days. Hopefully they will be able to shed some light on it for us. Then after sorting out the tax stuff, we get to delve into the world of mortgages and being first time buyers in the US. (We are first time buyers in the US but not globally. When we buy a house here it will be our 3rd home purchase) Taxes. Mortgages. I never agreed to any of this when I became a grown up.

Of course, one benefit of selling our UK house is that after this tax return, I will never have to do another one in the UK, ever again. Unless of course I return to live there, and that is not happening, unless I am dragged kicking and screaming.


1 comment:

  1. Hi :) I just wanted to leave my first comment here on your blog after spending my weekend reading through your amazing journey ! I really like the way you documented all of your struggles during the process, the ups and downs :) I can't get enough of your first car :D I never thought that you can have so many problems with a car over such a small period of time. It really gave me an idea of how complicated but well worth it, it is to live in a foreign country I hope that you'll continue updating this blog and keep up with the good work you've been doing for several years. I wish that one day I'll be able to share similar experience on my blog also :)

    ReplyDelete

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