crumlin Posted February 24, 2005 Share Posted February 24, 2005 How much money has changed hands on the private house market over the last ten years, must be a hell of a lot of tax lost is this why the Government is skint. FC saves the Island from doom, he pays his tax Link to comment Share on other sites More sharing options...
simon Posted February 24, 2005 Share Posted February 24, 2005 FCMR - thanks for the PMs. Perhaps your own case is complicated by the fact that you are in the building trade. So you perhaps have to be much more careful to ensure a careful distinction between business and domestic income. The personal income tax return form does not even include a section for detailing property sales and there is no reference to this matter in the notes. AFAIK. Conceivably, I suppose, it could be covered by the 'any other information' section of the form. But I think that Slim has provided good information. If they find out that you have recieved a payment but have not declared it you are taxed. I think that you're still getting the implication wrong. You won't be taxed because you failed to make a declaration of non taxable income. You'll be taxed if the income should have been declared for tax. There are many instances of non taxable income which does not have to be declared. The sale of shares at a profit - and Premium Bonds wins being two examples AFAIK. And Premium Bonds are likely to yield something like 2 - 4 % PA - the current maximum stake being £30K. OT/ There are some instances in which Manx residents pay more tax than UK residents. IIRC - Manx residents are double taxed on UK dividends. Manx residents are also taxed on income from NSI investments which are tax free in the UK. Though the Manx Government provides no similar minimum risk investments. AFAIK. And, unlike UK residents, Manx residents are liable for tax if they own properties in an EU country - since no double taxation agreement exists between the IOM and the EU. Meaning that Manx residents who own property in an EU country (unlike UK residents) must complete an annual tax return in the EU country where they also own property - and are liable for taxation against the amount for which the property could be rented on the local market. Even if the property is not rented out. Link to comment Share on other sites More sharing options...
FCMR Posted February 24, 2005 Share Posted February 24, 2005 I can only give you the facts that applied to me and the reason given at an apeal with the tax office. My hobby is bike racing and I buy and build race bikes for my own riders and others. Everytime I sell a bike I have to declare the payments recieved in my tax returns this was on the advice of the tax. Link to comment Share on other sites More sharing options...
crumlin Posted February 25, 2005 Share Posted February 25, 2005 Some has got the facts wrong, on Mandate this morning they interviewed so fella from PKF and he said that many people have been getting taxed on the sale of personal houses and that the system of Capital Gains is not working. He also said that the Government intened to sort the problem out and it needed done soon as it was unfair for some to be taxed when others are not. Link to comment Share on other sites More sharing options...
Slim Posted February 25, 2005 Author Share Posted February 25, 2005 FCMR wasn't entierly right with his original post, but he's not entirely wrong either. To be fair, he's also corrected himself after checking it out. FCMR has highlighted out the issue to me, which I wasn't previously aware of. I had assumed that there was no CG tax on property and that was that, but it does seem that in some circumstances you can get charged, so I thank him for that. I know when I come to sell any property I'm not living in, I'm going to check with the tax first just in case. It's also deeply worrying that there are such grey areas in the tax system. If your investing large sums into property, you really want clarity on the tax, but currently it does seem to be almost a whimsical charge on the part of the taxman. Also, odd coincidence that manx radio carried it today, don't you think? Stu? Link to comment Share on other sites More sharing options...
ykstarr Posted February 25, 2005 Share Posted February 25, 2005 does every thread where the two of you (FCMR and ans) post have to turn into some stupid bantering and bickering session? can't you just stay focussed on the thread? it's starting to get freakin irritating. Edited - alright, all the posts my post refers to are now gone, so i look a bit crazay! Link to comment Share on other sites More sharing options...
ans Posted February 25, 2005 Share Posted February 25, 2005 does every thread where the two of you (FCMR and ans) post have to turn into some stupid bantering and bickering session? can't you just stay focussed on the thread? it's starting to get freakin irritating. Edited - alright, all the posts my post refers to are now gone, so i look a bit crazay! Yes. I've just pruned the entire topic of the crap as you're quite right, it's a valuable thread with some good information in it. Link to comment Share on other sites More sharing options...
FCMR Posted February 25, 2005 Share Posted February 25, 2005 I have just been told that the Business Forum are to hold a meeting to discuss the problems with Capital Gains that has been brought to the attention of the public and companies over the past few days. Link to comment Share on other sites More sharing options...
Slim Posted February 27, 2005 Author Share Posted February 27, 2005 Looks like your right, there could be liability. Bottom line seems to be that if your thinking selling a property that you don't live in, check the tax office in advance of a sale to check if you have a liability. I think it's pretty dire that there's no hard and fast rule on this though. A tax on income from property is generally going to be substancial sums! Link to comment Share on other sites More sharing options...
Stu Peters Posted February 28, 2005 Share Posted February 28, 2005 Also, odd coincidence that manx radio carried it today, don't you think? Stu? <{POST_SNAPBACK}> Nothing to do with me Guv - my brain glazes over when people start talking tax allowances... Link to comment Share on other sites More sharing options...
Addie Posted February 28, 2005 Share Posted February 28, 2005 Did I hear it was to be scrapped? Link to comment Share on other sites More sharing options...
Slim Posted February 28, 2005 Author Share Posted February 28, 2005 Yes, I talked to a senior tax official this morning and he said that the property parts of the tax ammendment bill were being removed from the bill. He also confirmed what FCMR was saying, that you could be tax liable for a 2nd property if it was obvious that you bought the property soley with the intention to sell at a profit. So to clarify: I was wrong, FCMR was right, and I'm grateful for him for pointing this out. Link to comment Share on other sites More sharing options...
crumlin Posted February 28, 2005 Share Posted February 28, 2005 I guess if developers are using that as their sole source of income, they need to be taxed somehow. I know I just sold my house and they aint getting any capital gains tax out of me, no way. <{POST_SNAPBACK}> What would you say if the Taxman had been reading the postings and decided to tax you, you would be a bit sick I bet Link to comment Share on other sites More sharing options...
ans Posted February 28, 2005 Share Posted February 28, 2005 I'm not liable. So no, I wouldn't be sick at all. Link to comment Share on other sites More sharing options...
Observer Posted February 28, 2005 Share Posted February 28, 2005 As he sold his primary residence he would not be taxed. Link to comment Share on other sites More sharing options...
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