As I have already mentioned that I have completed tax year 2012/13 (one full tax year completed) then why I have to complete 2nd tax year as well? I should only be taxed for any earnings once I am back in UK regardless I am back in UK tomorrow or end of current tax year. Am I right?
Rules pertaining to UK residency of tax purposes changed from 6 Apr 2013.You will not pass the automatic overseas tests for a tax year and therefore because of family ties would be regarded as UK resident
The automatic overseas tests and examples are covered on pages 9and 16 of RDR3 here http://www.hmrc.gov.uk/international/rdr3.pdf
As far as Property 1 is concerned, please advise likely gain if you were to sell the property before 5 Apr 2014 to enable me to do some what if calculations or can I assume the gain based on current valuation is c 200k and also please confirm if the property is owned jointly with your wife.
Thanks, XXXXX XXXXX help.
Waiting for the 2nd part of the question about my property, and property-1 to be classified as main residence.
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I think my 2nd part of the question was not clear:
I have two properties:
Property-1 bought in May 1997 and lived there till Oct-2008.
Property-2 bought in April 2002 and rented out till Jul-2008 and then I with my family moved in from property-1 to property-2 on Oct 2008.
My family still lives at property-2 whereas property-1 was rented out from Dec-2008.
Now, when I, finally, come back to UK I would like to move back to property-1 and sold property-2 (where my family currently resides).
Would HMRC will still treat property-1 as my main residence while my family had been away from that property for almost five years and still be able to claim main residence benefit if I decide to sell the property in future?
What will be tax implication on property-2 if decide to sell the property on coming back to UK and do not claim it as my main residence?
So, by selling property-2, I still would retain the benefit of main residence of Propery-1 while I lived there before/after moving to/from property-2.