UK taxes when selling US house?

Hi everybody:

The last question on this in the forum was a couple years back, so I'm wondering if there's anyone out there with an up-to-date bit of expertise.

I've been resident in the UK since mid-2015. Early in 2017 I may well sell my apartment in Seattle. Am I going to have to pay capital gains taxes in the UK?

Advice much appreciated!

BC

Was it your main residence? Has it been rented out?

Yeah, it was my main residence. It has been rented out for part of the time I've been away.

Thanks for any advice!

Hi,

I can't comment on the tax question, I just joined the site as I am moving from Seattle back to the UK. I saw you were from Seattle and wanted to say hello!
It is sunny here in West Seattle!

Presumably you have declared the rental income in the UK and the US. It is unlikely that you would owe CGT in the UK after PPR and residential letting relief; but you'd have to look at the numbers and factor in the collapse in Sterling too...

Presumably you have declared the rental income in the UK and the US. It is unlikely that you would owe CGT in the UK after PPR and residential letting relief; but you'd have to look at the numbers and factor in the collapse in Sterling too...

......also, you would get the US $250k CGT allowance if the apartment has been your principal residence for 2 out of the last 5 years.

Okay, thank you both. Does the UK self-declared tax form (or process) calculate this stuff for me, or how does that work? I'd definitely be under the $250k allowance, but I don't know how HMRC 'checks' this stuff out. Honor system?

Thanks for enlightening me on the ever-complicated tax issues.

You calculate the gain under UK rules and self-assess on a UK return. It is similar to the US where you will be self-assessing depreciation recapture and passive activity losses.