How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask TaxRobin Your Own Question

TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 13598
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

I am a uk National and have lived and worked in Germany

Resolved Question:

I am a uk National and have lived and worked in Germany since 2006. I own a house in the Uk which I have owned since 2004 and I am current in the process of selling. Can you please advise what tax implications I should expect?
Submitted: 5 months ago.
Category: Tax
Expert:  TaxRobin replied 5 months ago.

Hello

The tax implications will be a tax on the gain of the sell. If you sell for more than your cost then you have a gain and that is subject to tax.

You may have to pay Capital Gains Tax when you sell (or ‘dispose of’) your UK home if you’re not UK resident for tax purposes. This applies if you sold your home after 5 April 2015 because the rules changed.

In most cases you won’t have to pay tax if you sell your home before 6 October 2016. You must have lived in it as your only or main home at some time before 5 April 2015.

This is because:

  • you get a tax relief called Private Residence Relief for the last 18 months you own your home
  • non-residents only pay tax on any gain made since 5 April 2015

If the gain did not change much from 5 April 2015 till you actually sell then you would not have to worry about much tax.

Customer: replied 5 months ago.
Thanks for the quick response. Just a small correction in my details I purchased the house in the UK in 2005 (not 2004) and paid £260k. We are now selling for £460k and have lived in this house as our only/main home. Can you please specifically advise if I will be subject to paying anything in tax. Thanks
Expert:  TaxRobin replied 5 months ago.

If you did not use it for any other purpose (no letting) then you can use Private Residence Relief. If you have used it for letting then you can have some of the relief applied but not all.

You don’t pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:

  • you have one home and you’ve lived in it as your main home for all the time you’ve owned it
  • you haven’t let part of it out - this doesn’t include having a single lodger
  • you haven’t used part of it for business only
Customer: replied 5 months ago.
As previously mentioned we lived in the house from 2005 until 2006 which is when we moved to Germany. Since 2006 the house has be let out. Can you please specifically advise what I will need to pay in tax. Thanks
Expert:  TaxRobin replied 5 months ago.

Then you will not be allowed to claim the full amount for Private residence relief.

Because you left the UK you have to know what the house was valued at on 5 April 2015. You paid £260k back in 2005 but the gain is just assessed from 5 April 2015.

Once you know that then you can apply the tax free allowance amount. From 2015 to 2016, non-residents who dispose of a UK residential property will be liable to Capital Gains Tax and, in most cases, will be able to claim the Annual Exempt Amount in the same way as for UK residents.

The first £11,100 of the gain is not taxed. Then you can claim a portion of the Private Residence Relief based on your actual use time.

Example You make a gain of £120,000 when you sell your home, which you owned for 12 years. You lived in the whole property for 6 years, then you let it out in full for 6 years.

You get Private Residence Relief for the time you lived there (6 years). You also get relief for the last 18 months you owned the property, even though you weren’t living in it.

This means you get Private Residence Relief for 7.5 of the years (62.5% of the time) you owned the property.

You get Private Residence Relief on the same proportion (62.5%) of your gain. This means you won’t pay tax on £75,000 of the gain.

The remaining 37.5% (£45,000) of the gain not covered by Private Residence Relief is your chargeable gain.

I cannot tell you a specific tax for you because you have not said what the house valued for in 2015.

You also have letting relief that can be up to £40,000.

Unless the property shot up in value form 2015 till you sell you may not have any tax.

Customer: replied 5 months ago.
Thanks for the additional info. Our house was valued in Quarter 1, 2015 at £420k. Can you please give an indicative figure as to what I will need to pay in tax. Thanks
Expert:  TaxRobin replied 5 months ago.

If you sell for 460k and the value was 420k then your gain would be 40k (that is not considering any cost to sell that could reduce that further).

The first £11,100 of the gain is not taxed. Then you can use the letting relief so you would not have any tax to pay.

If you rate in a positive way (look for the STARS or SMILEY FACES) I am credited with responding. It adds nothing to your costs but it assists me.

TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 13598
Experience: International tax
TaxRobin and other Tax Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions