Gifting UK property when abroad

by **europa3d** on Sat Jan 16, 2010 11:02 pm

I have resided in Spain for 18months but NOT as a resident having sold my main residence in the UK. I do not anticipate returning to the UK.

Next year I will gift my remaining property in the UK which has never been a main residence so will be liable for around £80,000 CGT at 18%.

I believe that if I stay out of the UK for 5 full tax years plus I will avoid UK CGT. Does that minimum five year period end after I have spent five complete UK tax years out of the country irrespective of the date of the gift during the five years . Or does the minimum five years only start after the date of the gift. I believe I would however be liable for Spanish CGT by living there even though not officially a Resident.

However, if during my minimum five years away from the UK I take out residency in somewhere like Gibraltar or Malta, for say two years and gift the property during the 2 year residency period, does that mean I would not be liable for either UK CGT or CGT in Spain when I return to Spain.

I would appreciate answers to all. :?:

or even parts of this question and I thank any one for their replies. Perhaps you may also advise that I employ specialist accountant advice.

by **mullet** on Sun Jan 17, 2010 12:15 pm

I believe that if I stay out of the UK for 5 full tax years plus I will avoid UK CGT. Correct.

Does that minimum five year period end after I have spent five complete UK tax years out of the country irrespective of the date of the gift during the five years . Yes.

Or does the minimum five years only start after the date of the gift. No, it starts at the 6 April of the first full year when you are not resident in the UK.

by **europa3d** on Sun Jan 17, 2010 5:05 pm

Thank you msp for your answers I hope they help others as they have helped me.
Can I please ask you about the Tax Haven status of spending two years as a resident in Malta during the 5 years minimum spent abroad.
If I spent two years in Malta during the five year minimum period as a resident and gifted the property during the two years would I avoid paying the CGT that would be due to spain on the gift if I was living there. Once again Thank You.