Property For Sale

I was told that if I want money from the sale of assets in an account with the intention of using it to buy property in the future I will be liable for VAT when I described some its removal for use as a deposit. Is this true? Does anyone know the truth about tax law on the profits from a sale of the house?

It depends on whether the property is your principal residence. There is no tax to pay if it is. However, if this is not your principal residence, the profit you made between the purchase and sale will be subject to tax capital gains. It is declared on the form of self-evaluation.

Also, while the money is in a savings account, the interest you earn will be taxed on income.

There is no tax associated with withdrawing money.

As a cautionary response to MB. You can exchange for goods such as duty free. There are companies which specialize in their implementation, I think they're called Section 1235 transfers. Report Abuse

Rather than asking a group of random people that question that you could communicate better with the tax office, or visit their website. In my experience, they are very useful.