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Sam
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Category: Tax
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Sam, please can you advise on capital gains tax on sale

Customer Question

Hi Sam,
please can you advise on capital gains tax on sale of my uk properties? I am moving to Holland and have purchased an apartment there, completion and move in on 1 June
I wish to sell 5 of my investment properties within one year of leaving. I intend to be in the uk less than 90 days a year. I will still have rental income from my other uk properties so I understand that there will be some income tax due. I intend to take up residency in Holland. Will the sale be free of CGT?
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi
Thanks for your question - and for asking for me
The laws regarding capital gains and non residency have changed with effect from 06/04/2015.
Prior to this date, any sales that took place, would see an exemption from UK capital gains IF, the individual was going to be non resident in the Uk for a period of at least 5 full tax years, during which the sales took place (and that would just leave the gain to be declared in the new country of residence)
However that has now all changed.
First you will need to inform HMRC of these sales - as you will be non resident but will be selling a UK residence.
The proportion of the gain made prior to 05/04/2015 will still fall under the old rules (as detailed above) but the proportion of the gain made after 05/04/2015 will now become liable to tax in the UK.
HMRC advise that - most people will have a choice of calculating this by either establishing the value of their property as of 5 April 2015 (known as “rebasing”) and then working out the amount of gain over that value in the normal way; or carrying out a simple straight-line time apportionment of the whole gain obtained over the period of ownership.
You will need to report the disposal on a NRCGT return and pay any CGT due within 30 days of the day after the date the property sale is completed (i.e. the date when title is conveyed). If you are already within the UK’s self-assessment (SA) system for income tax and CGT, you will need to report the disposal on a NRCGT return within 30 days with payment being made as part of your normal end of year tax payment or you will also have the option to pay at the time of reporting. Reporting and payment will be made electronically
The information that has been made available since 06/04/2015 can be obtained through the following link
https://www.gov.uk/capital-gains-tax-for-non-residents-uk-residential-property
So clearly the sooner you sell these properties the lesser gain you have arising in the UK BUT will still have a duty to declare the gain in Holland.
And of course you will continue to declare rental income to HMRC of which you still get your UK personal allowances to offset against those rents (as long as less than £100,000 per annum)
Let me know if I an assist further
Thanks
Sam

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