Hi the apartment was my main residence in Dubai while i was there. The purchase price was Approx £167k
I have been travelling and my wife stayed in the property. I am now back in the UK and will be a UK tax payer. My wife is back now and living in UK. I am starting a business (self employed). The apartment is empty and need to be sold as I am too far away to deal with renting it out.
David, thank you for your reply.Based on information given, the gain would qualify for private residence relief as it was your main residence since 2007 and your wife lived in the property even when you were in Sri Lanka.You have not stated if you bought another properrty on your return to the UK. You have up to 2 years from purchase of a second property to nominate which one is your main residence as you get PRR on one property at any one time.Furthermore, the final 36 months of ownership qualify for additional relief whether you are living in the property or not provided it has been your main residence at some point over the ownership period. This will reduce to 18 months from 6 Apr 2014.Although there appears to be a gain of (260-167) £93k it would all be covered by private residence relief and NO CGT payable. You can bring back the money into the UK. You will have to report the capital gain on your tax return
I hope this is helpful and answers your question.
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Thanks for the advice. I am just wondering if i pay the £100k to my ex wife what the situation is? Will she have to pay tax? technically I gain nothing from my purchase price after paying her. Or is it better to show it all on my next tax return and then pay her as a side issue?