UK DWP to start monitoring bank accounts

[Graham376]

Anyone such as liveaboards claiming UK benefits but not living in the UK may find life a bit more challenging soon. International money transfers will be flagged.

 

[Davy_S]

Interesting! they cannot catch the benefit cheats living in the uk, let alone those overseas, one wonders what will happen when its the DWPs turn to get hacked!

 

[ducked]

Bet you it'll be broken a significant slice of the time.

 

[Seven Spades]

If you don't live in the UK your state pension gets frozen but only if the DWP known this. This may affect people cruising.

 

[wonkywinch]

If you don't live in the UK your state pension gets frozen but only if the DWP known this. This may affect people cruising.

Only if you don't live in one of these countries .. Countries where we pay an annual increase in the State Pension

 

[Graham376]

It may go a bit further than just benefits being stopped, some UK tax residents we know have sold their boats and bought property abroad and not declared it to HMRC, who I understand have access to DWP records.

 

[lusitano]

Yup, Hopefully the clouds are coming for the benefit cheats.
The Costas will be getting a lot quieter !

 

[Seven Spades]

It may go a bit further than just benefits being stopped, some UK tax residents we know have sold their boats and bought property abroad and not declared it to HMRC, who I understand have access to DWP records

Are you sure that there is any requirement to tell HMRC if you own property abroad. I think you only need to declare it if you are buying a second home in the UK. If you live abroad you must declare it but that is not connected to home ownership.

 

[Graham376]

Are you sure that there is any requirement to tell HMRC if you own property abroad. I think you only need to declare it if you are buying a second home in the UK. If you live abroad you must declare it but that is not connected to home ownership.

Although an accountant told me I should list foreign property, I can't find anything on HMRC site. What I have found is the sale of overseas property (if UK resident tax payer) is subject to UK capital gains tax so, certainly has to be disclosed when sold. UK Capital Gains Tax (CGT) on Selling Overseas Property

 

[Seven Spades]

Yes Graham and it is awful because let's say you buy a property for €400,000 and sell it for €400,000 two years later you would say that you have made no profit. But HMRC will convert the value of both transactions into sterling and if the pound has gone down will assess your transactions to have given you a profit.

Any reasonable person would take the difference between the buying and selling prices and convert that to GBP and charge GCT. In effect all HMRC are doing is saying that you have to pay CGT on the change of the value of the currency. If you had held Euros in a foreign bank account you would not face a similar charge which is inconsistent treatment.

 

[Graham376]

Yes Graham and it is awful because let's say you buy a property for €400,000 and sell it for €400,000 two years later you would say that you have made no profit. But HMRC will convert the value of both transactions into sterling and if the pound has gone down will assess your transactions to have given you a profit.

Any reasonable person would take the difference between the buying and selling prices and convert that to GBP and charge GCT. In effect all HMRC are doing is saying that you have to pay CGT on the change of the value of the currency. If you had held Euros in a foreign bank account you would not face a similar charge which is inconsistent treatment.

On top of UK capital gains, it may also be payable in country where property is located. We have a boat to support and can justify money transfers if flagged so not too worried at the moment. However, if we do sell the property any large transfer back to UK would be flagged and have to be explained. Amazing how old boats have vastly increased in value

 

[Seastoke]

Why not pay the tax you, should . I bet you fly to uk for nhs treatment.etc.

 

[Graham376]

Why not pay the tax you, should . I bet you fly to uk for nhs treatment.etc.

Of course I do, I've paid UK taxes all my working life and still do in retirement. Not having sold anything, I've no extra tax to pay.

 

[Seastoke]

Of course I do, I've paid UK taxes all my working life and still do in retirement. Not having sold anything, I've no extra tax to pay.

It was a generic question.

 

[Fr J Hackett]

It was a generic question.

Just to upset you I live in France emigrated in 2014 and the UK pay a sizeable proportion of all my medical bills ( equivalent to what a French person would pay for the same treatment) Of course I worked and paid tax for over 35 years in the UK so I feel entitled to it.

 

[Sailfree]

Yes Graham and it is awful because let's say you buy a property for €400,000 and sell it for €400,000 two years later you would say that you have made no profit. But HMRC will convert the value of both transactions into sterling and if the pound has gone down will assess your transactions to have given you a profit.

Any reasonable person would take the difference between the buying and selling prices and convert that to GBP and charge GCT. In effect all HMRC are doing is saying that you have to pay CGT on the change of the value of the currency. If you had held Euros in a foreign bank account you would not face a similar charge which is inconsistent treatment.

Do you get a rebate if sterling went the other way then?

 

[Seven Spades]

Do you get a rebate if sterling went the other way then?

technically you can offset it against other gains elsewhere.

 

[Chris_Robb]

Do you get a rebate if sterling went the other way then?

You would be able to carry forward the loss to set against future CGT

 

[Beneteau381]

Why not pay the tax you, should . I bet you fly to uk for nhs treatment.etc.

Not very nice eh?

 

[Alicatt]

I pay tax in Belgium as a resident there, I have to inform the belasting deinst (lit. Tax service = HMRC) of any properties I have abroad and then pay the equivalent of council tax on them to the Belgian Govt. as well as having to pay the council tax in the UK on my UK house. It is counted as the equivalent of 1 month's rental income whether the property is rented out or not.