CGT if I Repatriate My Money to UK

by **SunChaser777** on Wed Nov 30, 2011 4:58 am

Hi ,I have been living and working outside the UK for 11+ years. I have kept my old passport with all my employment visas in it.
I tried to read the HMRC CGT booklet but it looks more like computer logic half way in referencing exceptions that reference more exceptions. :roll:

I have worked and paid taxes in my former expat country for 9 years but I decided to travel hard for 2 years from early 2010 while investing in stocks in a country with no CGT on gains. Would I be liable for UK tax if I decided to pay for a house outright in cash then expat out again ? I think I am effectively "stateless" just now enjoying some time away from the 9-5 machine travelling across Asia.In the time away from the UK I have never been in the UK more than 2 weeks every 2-4 years.

At the end of my work contract early 2010 I had to visit my dad as he was sick and instead of staying 1 week I stayed 10 weeks in 2010 (less than 90 days) while he went in for a serious op. and I did execute my first stock purchase offshore in that time period while in the UK .
I had to no intention to stay in the UK beyond visiting my parents,nor did I work while there.

If I'm going to descend into having to justify not paying CGT to HMRC on my stocks investing (potential of 2x or 3x increase since early 2010 ) based on executing my purchase and not having a work contract outside the UK then I'll just have to invest outside the UK.I will not be going back to the UK anytime soon but I wanted to buy a BMV (below market value) house outright in cash then maybe remortgage it with an expat BTL mortgage once I get a new job in 2012.

by **SunChaser777** on Wed Nov 30, 2011 5:16 am

When I say "Would I be liable for UK tax if I decided to pay for a house outright in cash then expat out again ?"
I don't meet tax on any property I buy, but tax on just sending my stocks profit money into the UK while I'm between jobs and travelling.
I know CGT exempts up to 10,400 quid or so for stock investing , I just don't want slapped with a surprise 28% CGT bill over and above 10k once my money appears in my UK bank account wired from overseas if I decide to buy property in the UK !!

by **mullet** on Wed Nov 30, 2011 7:07 pm

CGT will not arise on pure money transferred to the UK, unless you make a gain from the effect of the exchange rate. And even then you would only be liable to UK CGT if the gain arose after you became resident in the UK (since it appears that you will be able to claim split year treatment).