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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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, We are non resident in the UK since June 2006 before

Resolved Question:

Hello,
We are non resident in the UK since June 2006
before we left In 2005 we bought a house, lived there for approx 12 months before leaving for germany.
The house has been rented since October 2006.
We now wish to sell it, as we are non resident do we pay tax on the gain of 142,000 that we have made since buying it? If so, which rate do we pay as non residents?
Hope you can help.
Thanks
Debbie
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

As you appear to have completed five full tax years an non-UK residents (6 April 2007 to 5 April 2012), so long as you sell the house by 5 April 2015 and have not returned to live in the UK before you sell it, you will pay no CGT in the UK but you may have to pay it in Germany. You would need to take local advice on that.

As you may know, from 6 April 2015, non-UK residents who make a gain from the sale of a UK residential property will be liable to UK CGT at 28%. However, only the difference between the disposal proceeds and the value of the property on 5 April 2015 will be subject to UK CGT.

I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.

thanks, ***** ***** this was the case but good to hear it from an expert! do you know how hrmc will calculate this increase in value from apr 2015? would it be wise to get an independent valuation done?

Expert:  TonyTax replied 2 years ago.
You ought to get a couple of valuations done and hold on to them.
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