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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am german resident -living and paying tax in germany since

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I am german resident -living and paying tax in germany since 1981.In 4/2007 I received via deed of variation (1/2 share from Father & 1/2 share from mother) a flat in London, which my brother bought in 1981.He died 9/2002 intestate (so my parents inherited his estate).
In 9/2002 the flat was valued at UK Pounds 190.000.-. The flat was rented out since my brother's death. My mother lives in England (my father has died) and she has received the rental income from the flat every month; she has included the rental payments in der personal income tax return.
I have sold the flat for UK pounds 350.000.-last week (solicitor did all contracts) and my question is: am I liable to pay capital gains tax; and if not (have printed form CG34)
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Hello and welcome to the site. Thank you for your question.

You inherited a flat in 4/2007. It has now been sold. It has been your property since this date.

As the property is not your main residence (you are German resident), the gain made on the property would be chargeable to UK capital gains tax as per changes made to CGT rules for non residents with effect from 6 Apr 2015.

Your gain would be calculated using the valuation of the property at 5 Apr 2015 and not the value at the time of inheritance.

So if the value at 5 Apr 2015 was say £325,000 and your sale proceeds are £350,000, then the gain is £25,000. You would be able to deduct costs associated with the sale of property (i.e. solicitors' charges, agents fee etc).

More information on charges to CGT for non residents can be found here

https://www.gov.uk/capital-gains-tax-for-non-residents-uk-residential-property

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 1 year ago.

I guess the price the property will have gone up in 2 months , will be used up by the solictors fees and costs encsured on my side, as well as the insurancefor april-june 2015 and the management fees.- So it will be about

5000.-pounds increase in 2 months Maximum! which will be used up by my

costs. thank you for your answer which was helpful.

Expert:  taxadvisor.uk replied 1 year ago.
Birgit, thank you for your reply and your good words.

If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it.

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4937
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.
Your reward of a generous bonus is greatly appreciated.

Best wishes

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