CGT liabilities to buying family home whilst abroad

[Incredulum]

This is the opposite to your post number 4 in this thread.

http://www.taxationweb.co.uk/forum/capital-gains-tax-inter-spouse-transfer-t29572.html

Have you changed your mind?

[Peter D]

I have not change my view. It appears that you are loosing the plot. Read your link very carfully. The W did not live in the property at any time so that would be reflected in W's actual position. Regards Peter

[prcoop]

Gentlemen, I have been following the thread with much interest, still not sure I'm any the wiser but please dont fall out on my account. You should meet up for a beer or three! I do however want to thank you both for your input. Incredulum, i think you have gone off piste slightly in the sense that my question was if I bought in mine or my wifes name solely (then rented out for the time we're still in Hong Kong) then sold to the other half just before returning to the UK to be as a main residence would the first ownership be free of CGT. As an expat you can buy/sell without CGT as long as it's bought/sold before returning.

Assuming that was possible and Peter D I do understand what you're saying though one other thing i've since thought of as well that might throw a spanner in the works, is, in that scenario would she need to prove where her money came from to buy it. She cant really say "my husband lent it to me!" It would be mortgage free.

[Incredulum]

Incredulum, i think you have gone off piste slightly in the sense that my question was if I bought in mine or my wifes name solely (then rented out for the time we're still in Hong Kong) then sold to the other half just before returning to the UK to be as a main residence would the first ownership be free of CGT. As an expat you can buy/sell without CGT as long as it's bought/sold before returning.

I do not think you are correct (which is why I do not think I have gone off piste), but here you have got me. Perhaps somebody who regularly deals with these situations would confirm whether or not it is the case that a transfer between two non-resident individuals is in fact a disposal rather than a no gain/no loss s58 transfer.

[Peter D]

You are correct that there is no CGT on property sales in HG and a disposal to your wife may be possible. You will have to ask HMRC in writting to confirm they will not treat this as an interspousal transfer, even if she actually pays you the OMV. You need to present this scenario to an well versed International tax professional. I suspect HMRC will deem this as an interspoual transfer. I have not seen any mention regarding interspousal transfer only applies in the UK, they only mention if married or civil partners. Regards Peter