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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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RE: Capital Gains Tax. I left the Uk in 2008 and became non

Resolved Question:

RE: Capital Gains Tax.
I left the Uk in 2008 and became non resident from 2009, I sold a property that I had in the UK on 15th March 2015 (Exchange date) and it completed on 22nd May 2015. I used to rent it out when I was not living in the UK. I spoke to HMRC, who said that I would not be eligabe for the rebasing method of calculating my capital gains tax, and that infact, the old capital gains tax laws applied to me. The fact that i was not resident in the UK for more than 5 years until 5th April 2015 means that I am not eligible to pay my capital gains tax and the advisor also said that I do not have to file anything on my UK self assessment form for 2015-2016. Is this really true? She said to refer to the document online: CG25770, but this is really confusing to understand. Thanks for your help in clearing up this matter.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your question.

Changes to CGT on sale of residential property by non residents came into effect on 6 Apr 2015.

Prior to that, in most cases, non UK-residents paid no CGT in the UK on disposal of a UK residential property.

The HMRC advisor gave you correct advice.

You may find this document helpful .. HS278

https://www.gov.uk/government/publications/temporary-non-residents-and-capital-gains-tax-hs278-self-assessment-helpsheet/hs278-temporary-non-residents-and-capital-gains-tax-2015

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 1 year ago.
Thank you. So I do not have to fill out the form on my self assessment at all, I think it is the SA109, or even mention that I had a sale take place? So I am not liable to pay any UK capital gains tax and don't have to declare anything? Seems a bit odd?
Also the exchange of the property is the disposal date, correct? Just double checking.
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

If you are non resident then any gain from sale of property is not chargeable to UK CGT and you don't have to report it.

SA108 is Capital gain tax summary and SA109 covers residence and remittance basis

Disposal date is completion date and not exchange date.

I hope this is helpful.

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Customer: replied 1 year ago.
Actually, when I double checked, sorry to be a pain, but I asked the difference between disposal date and conveyancing date on the Report and pay capital gains tax on your UK property form online, as I initially thought I needed to calculate my CGT via rebasing. But then I read somewhere that the disposal date was the exchange and the conveyancing date was the date of completion, beacuse on this online form it needs both dates. I need to be certain of this as my exchange took place before April 2015 and my completion in May 2015, so I could be on the old rules or the new, depending on which date they take to calculate when I sold my property off. I just want to double check so that I am completely sure. If what you say is correct, then my Disposal date is 22nd may so lies after the 5th April changes, so I will have to file a return for this.
this is the form I am talking about
https://online.hmrc.gov.uk/shortforms/form/NRCGT_Return?dept-name=&sub-dept-name=&location=43&origin=http://www.hmrc.gov.uk
Customer: replied 1 year ago.
Sorry, I think that you may be wrong here, Disposal date is the exchange date....I just did a google search and lots of things came up about this.Kind Regards