r2i forum

if we sell house in UK (to repatriate money to India) do we need to pay tax on profit earned? anybody has done this?

Also, if I work in India and pay taxes there is there any problem from UK tax office/Inlandrevenue? any tax implications? should I inform them?

I am a UK citizen and OCI.

Please respond...

Thanks...

In uk, if you have lived in your house for last couple of years, there is no capital gains tax to pay.

If you have left uk to take up a job, then you just have to inform IRS and ther is no tax payable in uk on indian income. You have to stay away for a minimum period.

Abt House in UK, if its your primary residence in UK then there is no TAX (on the profit) payable in UK.

Abt job in India, I think before u leave UK, u need to inform Inland Revenue and submit one form.

Also if u want to keep your UK bank account/s open you need to complete one form which should be available with your bank.

Have u already R2Ied and working in India?

If yes then what formalities have you completed with Inland Revenue.

We are planning R2I next year.

Thx in advance.

fantoosh,
I am in UK now.
I had a plan to go with family some time in April-08, because school admissions have already began I am sending family by jan-08 and I will R2I after selling the house it may be some where around May-2008.
where are you R2Iing? me to B'lore.

We are also heading to Blore only..

You can refer to following URL...I think except u r house-related-question... it has info about all other queries...

http://www.hmrc.gov.uk/pdfs/ir20.htm

The link i am posting answers all your questions on UK taxation that u've asked
http://www.hmrc.gov.uk/cnr/faqs_general.htm

There is no CGT on your principle residence(main home).

There is no world wide taxation on your income like US,FRENCH etc,etc...

Your money left in the UK account will have tax deducted at source (atm 20%) until you fill in a form which once you are considered not living for the tax year can be gotten from the bank counter on asking.

The link above covers absolutely everything in detail.

fantoosh and HAKUNAMATATA. Thanks a lot.
It's good website. I think I will have to make NI contributions for a year?

Interesting Question,Am leaving in March,same situation as you.