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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15916
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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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.
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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.

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