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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 16228
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am 63 and took early retirement along with my with wife

Customer Question

I am 63 and took early retirement along with my with wife (aged 55) and we have moved to our holiday home in France with a view we could stay here for our retirement. Niether of us work in France so we rented out our property in the UK as a source of income which commenced 1st July 2015, we have now heard that if we do not sell the UK house within the next 9 months we could be hit for capital gains tax which is our obvious question to you, or do we just move back to the UK as to sell will mean no revenue as bank interest rates do not generate any where near what you can get for renting. Many thanks Brian & Jane *****

Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.


Let me take a look at this and I'll get back to you.

Expert:  TonyTax replied 2 years ago.

You should refer to HS283 for information on the main residence and CGT.

The gain on the disposal of a property is treated as having accrued evenly over the entire period of ownership. The proportion covered by the period you lived in it will be exempt from CGT as will the propoerion related to a maximum of the final 18 months of ownership when you were not living there. In addition, as the property will have been your main home as well as having been let, you will be entitled to a further relief called letting which will be the lesser of the following for each part owner:

1 £40,000,

2 the sum of the gains for the period that you lived in the property and the last 18 months of ownership and

3 the gain for that part of the letting period not covered by the last 18 months of ownership.

The notes here and here explain how CGT works for non-UK residents. Initially, it was thought that the rebasing option would only apply to those who were non-UK resident at 5 April 2015. I will seek to clarify that point and get back to you.

You should seek out local advice as regards ***** ***** position in France on capital gains.

I hope this helps but let me know if you have any further questions.

Expert:  TonyTax replied 2 years ago.


I'm just following up to find out if my answer helped or if you have any further questions.