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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 15769
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Is the fact that I paid Council tax during the period that

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Is the fact that I paid Council tax during the period that the flat was not rented, change my status (resident or non resident)... ? I was a resident in Italy during the whole period...
Customer: replied 18 days ago.
my question relates to the sale of a property in London and potential capital gains tax... Never was a resident in London, but when the property was not rented I paid the Council tax...

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Hi

So what is your question as capital gains will still be due as you were not living there and its that fact that triggers a capital gain so when sold you have 30 days to aleret HMRC and pay any gain due

Whether there are any exemptions if this had been your main home at some point might be a consideration

https://www.gov.uk/government/publications/non-resident-capital-gains-for-land-and-property-in-the-uk-self-assessment-helpsheet-hs307/non-resident-capital-gains-for-land-and-property-in-the-uk-self-assessment-helpsheet-hs307

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 13 days ago.
Hello, one more question... forward looking : I understand that the government is planning to raise capitalgains tax to 40 %. How likely is this ? And how likely is it that the sale of my flat will be subject to any CGT(I was a non resident 5 years prior to 2015 and it is a residential property), in view of the price evolution in London ( which has been downwards). How does the Agency for valuations look at this ?

Hi

Thus new question really should be listed as anew one as per Just Answer policy but as I cannot offer no real concrete answer

I am afraid you have as much information as I do - the probability is high though due to colipase of the economy due to covid and it would produce a tidy boost to said economy

The 5 years non residency position has not existed for many years its now of these three

  1. They had ‘sole UK residence’ for either the whole or a part of at least 4 out of the 7 tax years preceding the year of departure.
  2. They had a ‘residence period’ that was not ‘sole UK residence’ in between 2 periods of ‘sole UK residence’.
  3. The total of the ‘residence periods’ that were not ‘sole UK residence’ did not exceed 5 years in length

Most people have a taxable position to answer

Thanks

Sam

Customer: replied 13 days ago.
I am confused now. I am a non resident (resident in Italy) and have a residential property in London since 1977...
I understood that currently CGT is applicable on the sale of such property, on the basis of the CG made since 2015, provided the seller has been a non resident 5 years prior to 2015, This CGT rate is likely to go up in the near future...Is this a correct assesment. ?

Hi

That's the old rules there are no 5 years non residency rules anymore these were abolished several year ago as already stated

Its a probability that capital gains will increase in the future but I am sure you can appreciate tax experts do not have crystal balls to predict the future

Thanks

Sam

Customer: replied 13 days ago.
That is not what your colleague answered me yesterday ...
He specifically asked if I was a non resident 5 years prior to 2015 when CGT was introduced for buy to rent properties...

Hi

I cannot comment on another experts lack of up to date legislation- I can only advise how things are -

Thanks

Sam