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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4348
Experience:  FCCA FCMA CGMA ACIS
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Am UK non-resident residing in overseas 6 years since

Customer Question

am UK non-resident residing in overseas for over 6 years since leaving the UK.
I recently sold my UK property for 405,000 (I bought it for 249,500 in 2008).
Under the new CGT rules I understand I only require to pay CGT over the value increase since 5 April 2015.
However, I put the property on the market in January 2015 at which stage it was valued by 3 different estate agents at 425,000. Could I claim that I have actually made a loss on the sale of the property since April 2015 and hence I would not have to pay CGT.
I am looking forward to your feedback.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. You are correct in your surmise that you are only liable to UK Capital Gains Tax (CGT) for the gain made after a 6 April 2015 value. If the value was indeed more than the 405K [less selling costs] then there is a loss situation and no CGT payable. The loss can be carried forward against future gains. You will appreciate that unless you have a formal valuation ass at April 2015 you may have a problem proving the loss, particularly if HMRC adopt the line that you undersold. I would consult a trusted, local firm of Chartered Surveyors for their assessment of the value as at that date. HMRC might accept that three estate agents valued it in January 2015 or they might not and call in the Valuation Office Agency (VOA), a part of HMRC staffed by Chartered Surveyors, who are notified of all transactions in land as they occur and are thus well versed in current and historical values. One further point; when you left the UK did you complete a 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 and you will find dealing with that Department much easier. I do hope that you find my response of assistance.