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TonyTax
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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, Tax Consultant
Category: Tax
Satisfied Customers: 15884
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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