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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 8417
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I am interested in detailed tax advice in relation to moving

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I am interested in detailed tax advice in relation to moving form the Uk to that something you deal with?
JA: For which tax year do you need advice?
Customer: not specific to any tax year........
JA: Anything else you want the Accountant to know before I connect you?
Customer: Specifically interested in the NHR program and Capital gains tax relating to the sale of buy to let properties in the Uk

Hi, my name is ***** ***** I am a Chartered Tax Advisor.

I can help with detailed tax advice regarding ceasing tax residence in the UK and sale of UK assets. Please can you give me a bit more background of your circumstances and aims and we can take it from there?

I also have a few queries to get started:

  • How long do you plan to stay in Portugal for?
  • After you leave the UK, how many days per year do you expect to spend in the UK
  • Do you work? and if so in what country?
  • What is the size of your property portfolio and how much of the value relates to unrealised capital gains?

Kind regards, Peter

Customer: replied 7 months ago.
Hi Peter, Thanks for coming back to me - that is appreciated.
My wife and I currently own 23 properties or so. We hold 9 properties in our personal names (residential) and we 100% own 1 Ltd Company that in turn owns 2 100% owned subsidiary companies. The companies own a mixture of commercial and residential properties. We would like to sell 8 of the 9 residential properties in our own names and keep the Ltd company. The value of the properties we wish to sell is approx £5 - 5.5 million and the gain is approx £3.6 million. One particular property we own in London is worth +/- £2 million and has a £1.75million gain. However the 2015 value at the top of the market was £2million and this was the high of it. So my understanding is that if we became non-resident then after 5 years we would only have to pay the gain over the £2million.
Customer: replied 7 months ago.
I am happy to wait until Peter is available- I just want the best advice. Thanks.
Customer: replied 7 months ago.
Happy to stay in Portugal for 5 years
Customer: replied 7 months ago.
I understand we can visit the Uk for 90 days per year.
Customer: replied 7 months ago.
We run the business but can do this from anywhere on our phone and computer
Customer: replied 7 months ago.
We have rented a property in Portugal from next February. We have received conflicting advice. Someone said that if we join the Non Habitual Residence NHR scheme then we could receive dividends from our company tax free and our pension tax free
Customer: replied 7 months ago.
But nothing could be done about reducing our CGT bill if we sell the properties.
Customer: replied 7 months ago.
I am looking for clarity and if it is something you can help us with then maybe a face to face to guide us through the options.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

When you depart for Portugal remember to send a Form P85 to your tax office. On receipt HMRC will classify you as non-resident for the tax year following your date of departure and, furthermore, split the leaving year into two portions, one resident and the other non-resident. The form provides for the refund of any tax overpaid on departure. Once registered as non-resident you may spend up to 90 days in the UK in any one tax year without prejudicing your non-resident status.

Now it is a worldwide convention that pensions and rental income is taxed in country of origin. You will have to continue to self assess in the UK. You may be taxed in Portugal too on these sources of income and have to rely on the Double Taxation Convention between the two countries for protection.

As regards ***** ***** you live outside the UK for 5 or more full tax years any UK CGT due on the sale of UK assets is based on the gain from an April 2015 valuation.

I do hope that I have been of assistance to you in this matter.

From long experience I think you will find it easier to ring me, I am on 01750 725420.

bigduckontax, Accountant
Category: Tax
Satisfied Customers: 8417
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 7 months ago.
Hi- thanks for your response which is appreciated. I am away now for 3 days and so if OK will call you on Thursday? Would any particular time suit best. ? Best Allan

No problem, mornings are best avoided.

Customer: replied 7 months ago.
Would today work for a call? If so best time for you? Thanks Allan

I am available from 1300 hrs Allan.

I thnk we covered everything in the phone call.

Thank you for your support.