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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3925
Experience:  FCCA FCMA CGMA ACIS
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I'm looking to sell a London Property (which isn't my main

Customer Question

I'm looking to sell a London Property (which isn't my main residence) and i want to avoid paying Capital gain tax on the sale.
I understand that to do so i would have to complete the sale between 90 days of a new Tax year and then leave the UK for a period of time, is that correct ?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Were that that was the case! Here is the opinion from Out.Law.com [Pinsent Masons, Solicitors]:
'Non-resident UK homeowners that have spent less than 90 days in their UK property in the previous tax year will be liable to pay capital gains tax (CGT) on any gains when they sell that property from next year, the UK government has confirmed.'
From which one may deduce that the method you propose will not enable you to escape a CGT liability. You do have an Annual Exempt Amount AEA) of 11K to offset the liability and if the property has been let out then you may be entitled to Lettings Relief up to 40K instead of the AEA.
If you were non resident in the UK for five tax years and sold then under the 2014 Budget rules you would only be taxed on the gain on the value between a 6 April 2015 valuation and the net sale price realized.
CGT is levied at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale.
I am so sorry to have to rain on your parade. It is a classic example of Benjamin Franklin's dictum that in life there are but two certainties, death and taxes.

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