Remittance Rules

Hi Helen, I have a question for you in regard to the sale of property. I think I understand the 250K/500K capital gains tax exemption whereas we've lived in our home for 2 out of the last 5 years but what are the rules for bringing the realized gains from such a sale to the U.K in order to put down a down payment on a property there? If we realize a somewhat substantial gain (45-50K?) then have that money wired from our U.S bank to our U.K account, is that money subject to taxation in some way? We also intend to continue having my pensions deposited directly into our U.S account each month then wired into our U.K account, so I'm wondering if there's ramifications there also.......any advice would be greatly appreciated

If you intend to bring the proceeds from sale of principal residence over to the UK, there will not be any tax consequences in the UK. But you need to keep the account in which the proceeds / gain are in clean. Another words if this account generates any interest whilst you are a resident in the UK, you should set up another account and transfer the interest to the other account. Any interest generated (whilst resident in the UK) on any account will be taxable in the UK if you bring that money in.

The key is to keep the money earned before your residency in the UK starts clean.

Hope this answers your question.  

Cheers for that Helen