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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15595
Experience:  International tax
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I am an UK non resident, I hold dual Nationality. I have resided

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I am an UK non resident, I hold dual Nationality. I have resided outside the U.K. since 1990 only returning from time to time for less than a Month.
I have a property in the U.K. which I have owned since the early 80's and I occupied prior to my leaving the U.K. it has been let since my departure.
What I would like to know is, in the event of my selling the property what is the formula for calculating my CGT liability. I gather there have been a number of recent changes in relation to non residents selling Property in the U.K.
Also if the proceeds of sale remain in the U.K. would Tax be payable on the interest only.
Many Thanks
David Yurt
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloYou will pay tax on the gain. Your gain is usually the difference between what you paid for your property and the amount you got when you sold.If you have to pay tax you may get Letting Relief up to £40,000 You only pay tax on the gain since 5 April 2016 as a non resident.You can deduct costs of buying, selling or improving your property from your gain. These include:estate agents’ and solicitors’ feescosts of improvement works, eg for an extension (normal maintenance costs don’t count, eg for decorating)Leaving the money in the UK would not change the capital gains tax. You would pay tax on interest earned too.You are required to click a positive rating if I am to be credited with the response.
Customer: replied 1 year ago.
Just queering the date of 5th April 2016? I thought it was 2013. please confirm the date from which the CGT is calculated from.
Also how long would I have to re-occupy the property for to avoid CGT altogether.
Expert:  TaxRobin replied 1 year ago.
So sorry about. We are both incorrect. 5 April 2015For disposals of UK residential properties by non-residents where you owned the property before 6 April 2015 the standard approach for calculating the gain is to use the market value at 5 April 2015.
Expert:  TaxRobin replied 1 year ago.
If the property has made no gain for April 2015 till you sell then you pay no tax on the gain.You get a tax relief called Private Residence Relief for the last 18 months you own your home, so if you moved back in you would be allowed residence relief for the last 18 months.As I advised non-residents only pay tax on any gain made since 5 April 2015 so depending on when you dispose and how much it has increased you may not need to move back in.
Expert:  TaxRobin replied 1 year ago.
I really enjoyed working with you – please feel free to request me again when you come back to ask another question.Rating lets Just Answer know you received an answer which then credits me for my time.
Customer: replied 1 year ago.
I had a written valuation in July 2015. and the value has not changed since then apparently, so I would not be liable for any CGT on that basis?
Expert:  TaxRobin replied 1 year ago.
That would be correct
Customer: replied 1 year ago.
Thank you for answering my question so promptly, now you can go back to bed!
Expert:  TaxRobin replied 1 year ago.
Thank you. No rest for the weary I'm afraid.
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