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Category: Tax
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Sam Tax please - re CGT. I have already paid but the wrong

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Sam Tax please - re CGT. I have already paid but the wrong expert replied and now I find myself having to pay again to get Sam Tax to reply - I want a refund of the second charge...
I have contacted you before. We are expat Brits returning to UK after 9 years living in Spain (in rented property). We have now sold our old main residence in UK for 325K as a going concern to an investor with 6 students in situ and plan to complete the sale in Jan 2015. To ensure we pay CGT to UK hmrc and not to Spain, we have been advised to register as UK residents BEFORE exchange of contracts (despite the fact that we have been non-UK resident for over 5 years).
My first question is, do we have to register as UK residents before Exchange of Contracts (around November 2014) or before Completion (Jan 2015), and why?
I have also worked out what our CGT might be and would like this to be checked, as we do not want any nasty surprises after we have moved back and it is too late.
The facts and figures are as follows:
Jan 1997 bought our UK primary residence (No. 16) for 78250 (GBP).
Buying costs approx 500.
Oct 2001 bought investment property (No. 41 ) on a BTL mortgage for 120K (30K deposit). Never lived there. Rented to students from Oct 2001.
Oct 2005 moved to Spain. Rented No. 16 to students. Lived in rented house in Spain until now. Became tax resident in Spain 2007.
Working out of CGT
Sale proceeds Jan 2015 after costs of disposal: 319K
(half share me 159.5K, (half share Frank 159.5K)
Deduct Purchase price Jan 1997: 78750
(half me 39375, half Frank 39375)
Gross Gain is therefore 240,250 total
(half me 120125, half Frank 120125)
Deduct periods of Main Residence exemption
Last 18 months automatic exemption if previously owner occupied: 18 months
(18 months me, 18 months Frank), plus...
Period of owner occupation (Jan 1997 to Oct 2005) 105 months
(105 months me, 105 months Frank)
Qualifying Period: 123 months
(123 me, 123 months Frank)
Total period of ownership Jan 1997 to Jan 2015: 216 months
(216 months me, 216 months Frank)
Exempt period for me = 68,405
Exempt Period for Frank = 68,405
Assessable Gain for me = 51,720
Assessable Gain for Frank = 51,720
Deduct Lettings Relief for me: 40,000
Deduct Lettings Relief for Frank: 40,000
Chargeable Gain for me = 11,720
Chargeable Gain for Frank = 11,720
Deduct Annual Exemption for me: 11,000
Deduct Annual Exemption for Frank: 11,000
Taxable Gain for me = 720
Taxable Gain for Frank = 720
Tax Payable at 28% for me = 202
Tax Payable at 28% for Frank = 202.
Payable 31 Jan 2016
Look forward to hearing from you asap.
Regards, Irene
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
I have answered here for you
http://www.justanswer.co.uk/tax/8ov6t-sam-tax-please-re-cgt-i-contacted-before.html
Thanks
Sam
Customer: replied 2 years ago.

Did you get my reply? We will probably move back and register as UK residents in November just to be on the safe side when we exchange contracts but I really wanted to be sure - I need to know if we could wait until January when we actually complete the sale...??? Would exchange of contracts as a spanish resident mean we would have to pay CGT to Spain? Surely only on completion does the ownership of the house transfer??? Although we will register with hmrc and doctors etc as UK resident in Nov (to be on the safe side), we will physically move our belongings and pets to UK when we have completed on the house we are buying - completion also set for January 10th 2015. Until then we will give my daughter's address in London.

I also wanted to know about the two payments that I made in seeking to contact you... the first should be refunded. How do I go about this?

Expert:  Sam replied 2 years ago.
Hi
Thanks for your response
I had answered on your original question - so to keep matters simple, I will continue on this thread.
Unless the sale takes place after your return (actual return to live and work and conduct all aspects of your life) then you will have a Spanish consideration, rather than a UK one.
So as you will not move back to the UK until Jan 2015 - then just make sure the completion date takes place after your actual return date in Jan 2015.
To claim a refund please contact Just Answer customer services, link here for you to do this.
http://ww2.justanswer.com/help
Then click on the link "request a refund"
Thanks
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13704
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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