How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask TonyTax Your Own Question

TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15759
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I was non-resident in the UK from August 1970 to 1 June 1999,

Resolved Question:

I was non-resident in the UK from August 1970 to 1 June 1999, from which date I became a UK resident. In July 1993 I purchased a flat in London for £124,500. I sold the flat in September 2014 for £725,000.
Can I get relief for the period of ownership during which I was non-resident (i.e. from July 1993 to June 1999? If so, how do I report the gain in my 2014/15 tax return?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
I'm afraid that you won't get relief from Capital Gains Tax for the period that you were non-UK resident. The gain on the disposal of a property is treated as having accrued evenly over the entire period of ownership. You will be entitled to relief from Capital Gains Tax on a pro-rata basis for the period that the property was your main home and for the gain for the last 18 months of ownership regardless and if it was let as well as having been your main home at some point during your ownershio of it, you will be entitled to letting relief of up to £40,000. Take a look at HS283 here for more information on Capital Gains Tax and the main residence. If you need any help with the calculations I'll be happy to help but if you do I will need to ask for more information. I hope this helps but let me know if you have any further questions.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15759
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.

The flat was never my main residence, but was let for the entire period of ownership. If the gain is deemed to accrue evenly over the period of ownership, should not a portion of that gain be excluded from CGT on the basis that it arose while I was non-resident?

Expert:  TonyTax replied 1 year ago.
Thanks for accepting my answer.

As the flat was never your main home, you won't be entitled to letting relief. As I stated in my previous post, there is no discount for the period that you were non-UK resident. The only situation that I can think of where such a discount does occur due to a period of non-UK residence is in relation to a chargeable event gain arising from a single premium investment bond with built in life cover.

You will be entitled to exemption from CGT for the first £11,000 of gains you made in the 2014/15 tax year.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions