Quote:
Originally Posted by distant dreamer
Red,
I don't think you've got it right. I heard that Egypt does have a double taxation with the UK. But even with countries that do have this in place, the difference between what you pay in that country and the UK rate would have to be paid in the UK, depending on your circumstances.
Also, I heard Easyjet are not continuing the Hurghada Route, they are only doing it for a few weeks. However, I think they will continue the Sharm route, which is good news for those that have invested there!
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Red,
dd is absolutely correct. When these reciprocal agreements are in place you are entitled to subtract the amount you have paid in the foreign country from the amount you pay HMRC.
So, if you have a gain of £4,000 above your CGT tax-free band (and don't forget you have an annual exemption of around £8,000 in the UK before you pay CGT) and you pay £2,000 abroad then you would only pay £2,000 in the UK. Should you be married, this might lead you to ensure that the property you buy is owned by both husband and wife so you benefit from two tax-free allowances.
IHT is payable ay 40% on your worldwide assets above the tax-free band (currently around £280,000 I think), although don't forget there is no IHT between spouses.
Don't believe all you read in well-established property journals !!
Mark .Y.