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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am being seconded to work outside of the UK - so will

Customer Question

Hello. I am being seconded to work outside of the UK - so will be letting out my residential property for a period of time. Will I get charged capital gains tax if i then decide to sell it?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. If you move abroad for work purposes and both before your move abroad and after your return to the UK you occupy the UK property, then the period of absence abroad will be treated as a period of occupation by you and so will be exempt from Capital Gains Tax. This is the case even if you let the property. You must not have a property abroad which could be your main home unless you make an election for the UK property to be treated as your main home. Take a look at the notes starting at CG65030 and ending at CG65050 for the detailed rules. I hope this helps but let me know if you have any further questions.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15887
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thats helpful, thanks. What would happen if i decided to sell the property, while still living abroad?
Expert:  TonyTax replied 1 year ago.
I'll get back to you on that point in a bit. As the rules changed for non-UK residents who sell UK residential property after 5 April 2015 I need to check how those changes imoact on the absence abroad rules.
Expert:  TonyTax replied 1 year ago.
If you sell the property within 18 months of moving abroad, the gain will be fully exempt from CGT as you are given the last 18 months of ownership of a property as a tax free period when that property has been your main home at some point during your ownership. If you don't reoccupy the property for 90 days after your absence abroad you cannot claim absence relief. If you sell it whilst abroad, you cannot claim absence relief. However, you will be able to use one of three ways to calculate whether any part of your gain is taxable or not, one or more of which may incorporate letting relief. Take a look here and here for information on the new rules for non-UK resident owners of UK residential property.
Expert:  TonyTax replied 1 year ago.
Letting relief is covered in HS283 here.
Customer: replied 1 year ago.
This is great thanks. So I will be exempt from CGT if I sell within 18 months, even if I do not reoccupy for for the 90 days?
Expert:  TonyTax replied 1 year ago.
That's correct.
Customer: replied 1 year ago.
This has been very helpful, thanks. Would you be interested in providing me with tax advice going forward?
Expert:  TonyTax replied 1 year ago.
I would but I'm not allowed to take on private clients through this site unfortunately. However, you can still contact me through this site by asking for me alone to answer any questions you may have.

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