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Where Taxpayers and Advisers Meet

CGT sell or not to sell property

Posts: 59
Joined: Tue Dec 16, 2014 8:20 am

Re: CGT sell or not to sell property

Postby kanrent » Thu Jan 21, 2016 5:57 pm

As a non-resident you are liable to CGT on a sale of your property. There are three methods of calculating any capital gain on a sale and in your case the so-called "default" method is most likely to mitigate any CGT charge ie property revalued as at April 2015 and only any gain arising thereafter is taxable.

If you became non-resident pre April 6, 2015 and thereafter have not spent at least 90 days in the property in each subsequent tax year then no private residence relief is available other than that attributable to the last 18 months of ownership. In view of this last 18 months relief a sale pre October 6, 2016 will mean no CGT is payable. The period pre April 6, 2015 being irrelevant re any CGT charge.

Other things being equal it may make sense to sell pre October 6, 2016.
hi maths if i use the "default" method i assume that it would be to my advantage if the valuation i got before october 6 2016 was slightly on the higher side ?

Posts: 7798
Joined: Wed Aug 06, 2008 3:25 pm

Re: CGT sell or not to sell property

Postby maths » Thu Jan 21, 2016 6:15 pm

If you sell before 6 October 2016 then you will not a have cgt liability.

If you sell thereafter then the higher the market value as at 6 April 2015 the better (under the default method)..

It may be that the straight line apportionment method (as opposed to the default method) may produce a smaller cgt charge depending upon values involved.

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