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Sam, Accountant
Category: Tax
Satisfied Customers: 14195
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am an expatriot living in Kuwait and will be returning to

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I am an expatriot living in Kuwait and will be returning to live in UK. I have a property which I bought in 1975 and am now considering selling it. Do I have to pay tax on the difference in the buying and selling prices?
Thanks for your question, I am Sam and I am one of the UK tax experts.
In essence yes - however whether this charge arises in the UK or Kuwait depends on when you plan to sell, and if a UK charge then whether this charge has tax reliefs also can be considered. SO could you advise
1) When do you plan to return to the UK
2) When do you hope to sell this property by
3) Has this property ever been your main residence
4) Have you rented out this property and declared rents to the UK tax office (HMRC)
5) Have you spent less than 90 days a year (each UK tax year) visiting the UK to be considered as NOT resident by HMRC
Customer: replied 2 years ago.

Dear *****,

Thanks for your reply.

To answer your questions,

1, I plan to return after I have sold my property, say within 6 months.

2, within 6 months,

3, yes, me 5 years and my wife 10 years (until1990),

4, since 1990 the house has been rented and has continued thus to this day - the rent has been declared to Inland Revenue through our local agent,

5 I haven't returned to UK since 1990.

Any more questions - please call me.

Kind regards,

David Buxton

Hi David
Thanks for your response
I am afraid I cannot call you - this either works through the Q & A or through additional services I can provide a contact number for you to call me.
But based on the answers you have provided I can advise the following - that there will be a small capital gain due to the change of legislation (effective from 06/04/2015) which advises that under the old rules (so up to 05/04/2015) you will have NO UK capital gains liability on which the charge arises in the UK (but I do advise you to check the Kuwait tax position) but any gain that has been made on the property for the period 06/04/2015 to the date of sale WILL have a UK capital gain consideration.
However - as this property appears to be held in your joint names (you and wife) and if she is also a UK citizen, then you have each an annual exemption allowance- which allows each of you to have the first £11,100 of the gain tax free.
So unless this property has made a gain in excess of £22.200 between the dates 6th April 2015 and the date of sale, then no UK gain to charge in the UK.
Let me know if you wish me to expand any further, but it would be appreciated if you would rate the level of service I have provided, as this ensures that Just Answer credit me for my time.
Customer: replied 2 years ago.

Dear *****,

I understand that you cannot call me - no problem.

One more question - if I return to settle in UK and I sell the property after returning am I liable to any tax on the sale of the property? In other words I should not return until I have sold it?

I note your concern and will comment favourably on your service, no problem. I think this is the last question!

David Buxton

Thanks for your further question
If yous sell after you return then you are considered for the full capital gain in the UK.
Sop yes do sell before your return to minimise your UK tax gain exposure.
If you do have any further questions connected to the original question posted, that you wish to ask within a few days of accepting or rating the service provided - the Q & A thread is still accessible through MY QUESTIONS when you log onto Just Answer - so you can still ask follow up questions.
Its only its its a new question with a new topic would you then need to list it with a new amount offered.
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