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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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I am planning to move from Dubai to UK next April. I

Resolved Question:

I am planning to move from Dubai to UK next April.
I currently own an apartment on The Palm, Dubai, which has been our family home for the last 9 years. I have recently bought a house in UK.
The plan is to rent out the Dubai apartment as a means of supplementing my pensions.
If I decide to sell the apartment, will I be liable to any CGT? If so, what percentage?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your question..

As the property in Dubai has been your main residence for the last 9 years, you would be able to claim private residence relief against your gain for that period. You would also claim additional relief for the final 18 months of ownership as the property in question was your main residence at some point during period of ownership.

It is your intention to rent out the property to supplement your pension/income.

This rental income would be subject to UK income tax as you would be a resident in the UK for tax purposes.

On sale you would be able to claim letting relief for the period the property is let.

Once you take into account aforementioned reliefs and allowances, any remaining gain would be chargeable to CGT at 18%, 28% or a combination of both depending on your total taxable income (including the gain) in the year of sale.

More information on Private residence relief available on sale of residential property is covered in HS283 here

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2016

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.
Thanks for your swift response. This info answers my question. Thanks. RDE
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

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