As things look at the moment, he will be abroad permanently. He has a permanent job in the US. He left the UK in January 2013. He does have another property here which he lets out. He has lived in both properties though
Thank you . I really appreciate it and look forward to you answer
Hi again.If you son sells the property by 5 April 2015 and makes a gain, provided he does not become UK resident again within 5 full tax years (6 April to 5 April) of leaving the UK, he will not have to pay CGT in the UK. As he left the UK in January 2013, his 5 full tax year period started on 6 April 2013 and will end on 5 April 2018. If the property was sold and he returned to the UK before 6 April 2018, the gain would be taxable in the tax year of his return to the UK. If the property has been his main home at any point, then the taxable gain would be reduced by main residence relief and letting relief.From 6 April 2015, gains made by non-UK resident individuals on the disposal of UK residential property will be taxable in the UK but only on any increase in value from 5 April 2015. So, in effect the 5 April 2015 value will become the cost for CGT purposes. How main residence relief and letting relief which has been accrued before 6 April 2015 will be taken account of remains to be seen.If your son gifts you the money to buy yourself a flat to live in which is in your name, you will not pay tax on the gift as gifts are not taxable in the hands of the recipient. Cash gifts are not subject to CGT. So long as your son lives for seven years after making the gift, it will not be included in his estate for Inheritance Tax purposes.If you later sell the flat which is in your name and make a profit, the gain will be exempt from CGT so long as it has been your main home for the entire period of ownership or for all but the last 18 months of ownership which is given as a tax free period in any event should you move away.I hope this helps but let me know if you have any further questions.
Thank you so much for that. It has clarified things for me and I can pass the info on to my son.