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bigduckontax, Accountant
Category: Tax
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I bought a property jointly with another person whilst

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Hi, I bought a property jointly with another person whilst we were both UK tax resident in 2005. We lived in the property until 2010. In 2010 we left the UK and are now no longer tax resident in the UK. We rented the property out from 2010 until 2015. The property has been sold for a capital profit in March 2016. There was no increase in value from April 2015 to March 2016. Are we subject to UK CGT on the sale of the property and if so, how is it calculated?
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Firstly, when you left the UK did you complete a Form P85 and send it to HMRC? If you did not you should do so immediately, fortunately it is available on the web, there is no time limit as to its submission and it can be filed on line. On receipt HMRC will classify you as non resident. Before I can fully address your question I need to know the exact date you left for overseas in 2010.
Customer: replied 2 years ago.
I think I did complete the form, but will have to double check my records. We left end of March 2010 (30 March 2010).
Phew, just under the wire! You have been out of the UK over 5 complete tax years so are only liable for Capital Gains tax (CGT) for the gain between an April 2015 valuation and net disposal price received. Your question says that there was no increase in value in this period so there will be no CGT bill. The Valuation Office Agency, part of HMRC, staffed by Chartered Surveyors, may disagree, but in ant event you have an Annual Exempt Amount of 11.1K to offset any notional gain. I do hope that you find my reply of assistance.
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