My husband has been offered a job in Dubai after a period of unemployment in the UK oil industry. We are delighted (and relieved!) but worried about what to do with our house. The market here is in recession (again, thanks to oil downturn) and the rental market non-existent.
We jointly own the property which has been our main home for 10 years. It is the only asset we own and it still has quite a high mortgage outstanding.
We want to sell it but it will likely take several months. My husband is leaving soon and I will follow with the kids by the summer. So it's possible either he, or both of us, will be ex-pats by the time the property sells.
I would like to understand how CGT will affect us. As you can imagine, money has been very tight recently and we have debts arising from a failed business.
Am I right in understanding that the CGT liability will relate only to what gains the property value has made since we become non resident for tax purposes? So for example, if we have it valued now at £300,000 whilst both still UK tax payers, then it sells in the next few months for £300,000 then there is no CGT to pay? But if it sells for £310,000, then we are owe CGT at 18% on the profit gained since we left the UK of £10,000?
Also, what happens if my husband is non resident but I'm still here? Does the CGT only apply to his half of the profit?
With many thanks for your assistance. We are going to engage a tax accountant to sort out all our details ref tax returns etc before we go, but for now we are still not technically earning anything so your help is invaluable.