Selling House in UK and Move Abroad

[jkoobtan@hotmail.com]

I am on work permit in UK. I plan to sell my house and move back to Singapore with my family.

Do I need to pay the capital gain tax on my property?

How do I avoid paying the CGT? Such as selling the house a few years later while I am abroad?

[Nigel Lord]

This depends on your personal circumstances.

If you have lived in the property as your main residence, and you neither own nor have access to any other main residences (in the UK or abroad) then you will be entitled to 100% Principal Private Residence (PPR)Relief.

If, however, you have not lived in the property throughout its ownership; and/or you have a second residence available; or you have let part of the property, you may be liable to UK CGT.

It is quite likely that you will have various reliefs available (e.g. permitted absence, final 36 months ownership, residential lettings exemption, indexation, taper relief, annual exemptions etc.). You will need to provide more information or take professional advice to receive a definitive reply.

If you are still potentially exposed to UK CGT, it would probably be possible to defer the sale of the property until you have ceased to be UK resident thus escaping UK CGT.

Our firm specialises in this area of taxation. If you would like further advice, please do not hesitate to contact us.

Nigel Lord
Lord Asscociates
Caxton House
Old Station Road
Loughton
Essex IG10 4PE
020 8418 9101 or 07769 931 852
mail@lordassociates.co.uk