How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15917
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I am a non UK national who is also non resident in UK. I have

Resolved Question:

I am a non UK national who is also non resident in UK. I have an apartment in London for the last five years which I have used as my principal residence whenever I or my family members want to use the same. The property is jointly in the name of me and my wife. The property has never been rented out.
The questions are as follows:
1. If I and my wife sell the property now, do I have to pay any capital gains tax?
2. If I sell the property after a couple of years, will I have to pay capital gain tax since I believe there is a new law which is likely to be enacted in April 2015?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

If you are a non-UK resident, you can sell the property and pay no UK CGT so long as:

1 You exchange contracts to sell it by 5 April 2015.

2 You don't become UK tax resident within 5 complete tax years of your leaving the UK if you left on or before 5 April 2013 or within five years of your leaving the UK if you left after 5 April 2013.

Non-UK resident owners who sell UK residential property after 5 April 2015 may pay CGT in the UK on their gain if they make one. However, only the gain that accrues between 5 April 2015 and the date of sale will be taxable. So, in effect, the value of your property on 5 April 2015 will become its cost for CGT purposes.

As the detailed rules have yet to be decided, how the existing rules on main residence relief and letting relief will fit in remains to be seen and I expect the changes to complicate matters for those who are selling what was their home when they lived in the UK and who may have let it.

I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you

Related Tax Questions