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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My house in the UK is currently on sale because I am going

Resolved Question:

Hi,
My house in the UK is currently on sale because I am going to leave abroad (Spain) in the coming weeks. I have owned and lived in this house for almost four years. It may not be practical to finish the sell before I physically move. Does the residence tax relief apply in this case? It is likely that this year may be considered a split year, since when I go I haven't spend more than 183 days in the UK, where I have been a tax resident for the last 10 years. It may or may not be for my husband, who may spend more than 183 days this tax year for work and who owns 50% of the house.
Submitted: 11 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 11 months ago.

Thank you for your question..

There have been changes to how capital gains arising from sale of residential property are taxed for non residents for UK tax puposes with effect from 6 Apr 2015.

As you have owned and lived in the property for almost four years before going to live abroad, there are 3 ways to calculate your gain or loss and these are covered under "Calculate your gain or loss manually" here

https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-calculating-taxable-gain-or-loss

In your case, you would work out the gain over the whole period and avail private residence relief to cover your gain and therefore pay no CGT.

More information on private residence relief is covered in helpsheet HS283 here

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

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 11 months ago.
Hi, many thanks for your response. It does help indeed. I understand then that it is still possible to claim private residence relief even if the actual disposal happens a few weeks after leaving the country on what it may be a split year for tax purposes.
Expert:  taxadvisor.uk replied 11 months ago.

Thank you for your reply.

You will be able to claim private residence relief for the whole period even if the disposal takes place a few weeks after leaving the country.

If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it by Just Answer.

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Customer: replied 11 months ago.
Excellent, thanks. Let's hope now it is just weeks and not months, since the property is already listed for sale.
Expert:  taxadvisor.uk replied 11 months ago.

I thank you for accepting my answer.

Best wishes

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