CGT

[JD1955]

My client was resident abroad for roughly ten years during which time (in 2006) he purchased a holiday property for his own use. It was never let and he returned to the UK in 2011 and had the property valued at that time with a view to selling eventually. He sold in 2015 and the gain was reported to HMRC having been calculated on the valuation on his return to the UK and the sale price. HMRC are stating he must pay CGT on the whole of the gain including the portion applicable prior to his entry into the UK. This seems immoral somehow that the UK authorities should benefit from a gain arising when he wasnt even resident. Are HMRC correct?

[AGoodman]

Yes, HMRC are correct. I imagine the client was not proposing to pay CGT to the other country for the period when he was resident there.