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Where Taxpayers and Advisers Meet

Avoiding loss of NRCGT relief to Apr/15 on return to UK

boxley
Posts: 5
Joined: Mon Aug 27, 2018 10:25 am

Avoiding loss of NRCGT relief to Apr/15 on return to UK

Postby boxley » Wed Jan 09, 2019 9:36 am

Hello
I have lived abroad since 2010. My only UK property, which was my home before I left, was let out and has increased in value by around £250K during that time. I will want to return in a couple of years and will need a home. I might not always want that home, though. Depending on when I sell, I calculate a potentially large difference in tax due. If I sell before I return, it’s ok because I benefit from paying CGT only from Apr/2015 (less PPR). If I sell after I return I have to pay CGT for the entire period.

It’s not worth selling up and buying elsewhere before I return, due to the SD. Is there a way to settle the outstanding CGT up until 2019 now, before I return?
Thank you.

Tom7000
Posts: 68
Joined: Wed Aug 06, 2008 3:30 pm

Re: Avoiding loss of NRCGT relief to Apr/15 on return to UK

Postby Tom7000 » Wed Jan 09, 2019 6:11 pm

You do it 2 ways

under the 2015 rules and regular rules and choose best option :)

You cant pay in advance. You only pay the tax when you actually sell. You have to notify them in 30 days of selling or you get huge fines. THESE ARE THE KEY POINTS TO REMEMBER

Keep my contact details for when you sell and I will help some more >> tom@ttca.co.uk

boxley
Posts: 5
Joined: Mon Aug 27, 2018 10:25 am

Re: Avoiding loss of NRCGT relief to Apr/15 on return to UK

Postby boxley » Wed Jan 09, 2019 7:02 pm

Thanks but... is there no way of transferring it to someone, paying up, and then transferring it back?

bd6759
Posts: 2964
Joined: Sat Feb 01, 2014 3:26 pm

Re: Avoiding loss of NRCGT relief to Apr/15 on return to UK

Postby bd6759 » Wed Jan 09, 2019 8:00 pm

Then it wouldn't really be a disposal.

AdamS93
Posts: 195
Joined: Tue Sep 26, 2017 6:28 pm

Re: Avoiding loss of NRCGT relief to Apr/15 on return to UK

Postby AdamS93 » Thu Jan 10, 2019 8:58 am

Thanks but... is there no way of transferring it to someone, paying up, and then transferring it back?
Potentially, but HMRC may look through this as the only purpose of this transaction is to avoid tax.

It also has other implications, notibly with inheritance tax and stamp duty land tax, not to mention trusting who you transfer the property too and the few thousand £ legal fees.

You need to look at the whole picture, not just the CGT position to make the right decision.


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