You may be in a position that is resulting in you moving away from the UK and moving to another country. Whether it be for work or for personal reasons, it's a situation that can be difficult for anyone having to arrange such a big change. That's where we come in; to try and make it easier.
You may not be planning on coming back anytime soon, so there’s no point leaving behind an empty house; the funds you could secure through selling will help you get comfortable in your new country. However, there are enough things to worry without the sale of your home being added to your to-do list, so we’re going to talk you through all the things you need to know to sell your home when moving abroad.
Do I have to pay Capital Gains Tax?
In one of our earlier blogs we covered the Capital Gains Tax and what it means for prospective sellers, but what does it mean for those who are wanting to move abroad?
Typically when you’re selling your home, you won’t have to pay Capital Gains Tax providing you can meet the government’s criteria:
The property has been your main home for the time you owned it
It was only used by your family and no more than one lodger throughout the time you owned it
The total area of land doesn’t exceed 5,000 square meters (roughly the size of a football pitch).
Providing you meet this criteria, you will not be eligible to pay CPT, which means more money towards your next adventure. However if, for example, this property was not your main home and you had used it to generate a profit, you would be liable to pay the tax.
The tax is calculated based on the profit you make from the asset, in this case, your property. Even then there is a tax-free allowance of up to £11,700 and everything over that is either charged at 18 or 28 percent depending on the amount earned (figures relevant to the 2018/19 financial year).
When moving abroad, chances are you’re buying a new property in a country that has a different currency to the UK. This means that unless you have money already in that currency due to savings or wages being paid in that form, then you’re going to have to purchase some with the money you receive from the sale of your house. For example, if your house sells for £100,000, current exchange rates could see you receiving around €117,630.
The property chain can sound it like would become more convoluted when a home in another country is added. However, the only major difference is the currency exchange and that can be handled by your bank or another similar third party. As long as you can place the required deposit down on the house and secure a mortgage, selling your house and moving abroad is essentially a straightforward process.
Once you’ve sold your house, you won’t have to move out right away. Time is given to ensure you can complete on your next house and have time to move to your new country.
Whilst the idea of completely relocating to another country may seem daunting and impossible, the process itself can be much simpler than you first imagine. The important part is ensuring that you have everything lined up with the house you’re buying so you can quickly transfer the deposit and begin to start your new life out there.
What if things go wrong?
Sadly, when it comes to selling property there is always a level of risk. Sometimes things can go wrong, and that can leave you in a panic. Thankfully, we're here to support you. If you had a buyer in place but they've dropped out, you can contact us, We Buy Any House, to see what we can offer you for your property to keep your chain intact.