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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3928
Experience:  FCCA FCMA CGMA ACIS
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We own 4no buy to let Scottish properties. Bought one as main

Customer Question

We own 4no buy to let Scottish properties.
Bought one as main residence Feb2005
Bought 2nd as main residence June 2005 an moved rented previous out.
Bought 2no buy to let June 2006.
Looking for advice to dispose of first one or as all of them.
Lived in NZ since June 200
Martin
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello Martin, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
You are, as a non resident, liable to Capital Gains Tax (CGT) on the gain made from an April 2015 value to the actual net disposal receipt(s).
When you left the UK did you complete Form P85 and send it to HMRC? If you did not you should do so immediately, fortunately there is no time limit as to its submission, it is available on the web and can be filed on line. On receipt HMRC will classify you as non resident. You will find dealing with HMRC much easier of you use the P85 procedure. However, the net rentals received from your buy to let properties are still the subject of UK Income Tax (IT) and you should be making annual self assessment tax returns to declare this income. Remember that mortgage interest, currently allowable against IT, will be successively withdrawn from such properties from 2017 and will be finally completed by 2020.
Your arrival date in NZ is unclear and may affect my answer so I would be obliged if you would clarify the position.
Customer: replied 1 year ago.
Thanks. 2007 is when we moved to NZ.Martin
Expert:  bigduckontax replied 1 year ago.
We do have a slight problem with residences 1 and 2 Martin as Private Residence Relief (PRR) may not apply to both and the rental period before you left for NZ might be liable to CGT. However I am pretty sure that a combination of the Annual Exempt Amount (11.1K) and Lettings Relief (LR) up to 40K will negate the gain and reduce it to nil. Please don't forget the P85 procedure if you have not done it already.

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