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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13865
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am selling my share in a property partnership to my

Resolved Question:

I am selling my share in a property partnership to my partners, the property is in the UK, but I am non domicile, and live in Spain. Am I liable to pay CGT in the UK. I do pay Income Tax in the UK
Submitted: 11 months ago.
Category: Tax
Expert:  Sam replied 11 months ago.

HI

Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.

Yes you will be liable to capital gains tax as you are selling a UK share of propriety (so in essence are also selling your share of the partnership which remains liable to UK tax inspire of you residency status)

Thanks

Sam

Customer: replied 11 months ago.
I know I am liable to CGT. My question was am I liable to PAY Capital Gains Tax
Expert:  Sam replied 11 months ago.

Hi

Yes you are, as already advised above (you are liable in spite of your residency status)

If you were exempt due to your residency/non domicile I would have stated this

Thanks

Sam

Customer: replied 11 months ago.
I know this is now the case for residential property since 2015, but is it now the case for Commercial property?
Expert:  Sam replied 11 months ago.

Hi

You are not selling commercial property per se you are selling your share in the partnership which happens to link in with the property - so you are liable to tax on this sale as advised.

Thanks

Sam

Customer: replied 11 months ago.
The partnership is purely for Commercial property ownership, and nothing else. Is this not relevant ?
Expert:  Sam replied 11 months ago.

Hi

You advsie this is partnership in a trade rather than just owners of a commercial property that receives rents - so can you clarify the exact position by answering the following questions as I feel we are just going around in circles and you are providing me no further information for me to have a different answer for you which you see to want.

Is it one commercial property or several

Does the partnership trade in business and use this commercial property in trade or rent it out and just receive rents

What income do you receive on which you suffer UK tax

Thanks

Sam

Customer: replied 11 months ago.
The property is for renting out solely as far as the partnership is concerned. The reason for selling is that my co partners are not passing my share of rents to me,, so although in the past I have received rents, and declared same for Income tax purposes, I now receive nothing. My Accountant has now come back to me and advised that as I have lived outside the UK for over 5 years, I am not liable to pay tax on the gain.
Thank you for your assistance,Kevin
Expert:  Sam replied 11 months ago.

Hi Kevin

Then its not a partnership (trade income) its just rental income

And in that instance your accountant is correct there is no capital gains to pay in the UK as its a commercial rental, but you should declare this gain in Spain

Thanks

Sam

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