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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am moving back to Uk on 1 Mar 2013. I have lived in Cyprus

Customer Question

I am moving back to Uk on 1 Mar 2013. I have lived in Cyprus since 8 Feb 2001. From 8 Feb 2001 until 23 Nov 2010 I was emplyed as a UK MOD Crown servant working in the Sovereign Base Areas. On 24 Nov I retired and took up expat status.

Will my pension income in UK FY 2012/13 be treated as SPLIT YEAR, ie I will only pay UK tax on 1/12 of it?

Also I am selling a house which is not my principle private residence. Completion on the sale is expected before 1 Mar - about 24 -26 Feb. The Capital gains tax bill will not be large but can you confirm that as |I have lived in Cyprus from 2001 as explained above that I will not be subject to capital gains tax.
Submitted: 4 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 4 years ago.

Hello, if you have any questions or need further clarification after reading my answer please let me know.

 

Thank you for your question ...

 

You are right, you could ask for tax year 2012/13 to be treated as split year. More information on it is covered in Sec 2.4 on page 8 of HMRC6 here

http://www.hmrc.gov.uk/cnr/hmrc6.pdf

 

Provided you sell your property before coming back to the UK, any capital gain made will not be chargeable to Capital Gains Tax here.

For confirmation of this please look at Q6 here

http://www.hmrc.gov.uk/cnr/faqs_capgains.htm#cg3

 

If you need more information please let me know before you rate my service.

 

I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page.

 

Customer: replied 4 years ago.

I will exchange contracts on the 3 Feb. If there was a delay in completion until after 1 Mar would I then be liable for a capital gains tax - if there is gain to pay outside of all the various allowances.

Expert:  taxadvisor.uk replied 4 years ago.

Laurie, thank you for your reply.

 

If the completion is likely to be delayed by a few days, it may pay for you to delay coming back to the UK and thus avoid payment of CGT.

As it was not your home residence, net gain from sale would be chargeable to capital gains tax. You would get your capital gains allowance of £10,600 before any tax is calculated.

 

If you need more information please let me know before you rate my service.

 

I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page.

Expert:  taxadvisor.uk replied 4 years ago.

Hi Laurie

 

I notice you have viewed my response to your reply (viewed on 07/01 around 14:43).

 

Just checking to see if you have any issues relating to your question that I may not have addressed.

 

If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.