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Where Taxpayers and Advisers Meet

Non resident selling property

kanrent
Posts:123
Joined:Tue Dec 16, 2014 8:20 am
Non resident selling property

Postby kanrent » Fri Apr 28, 2023 3:40 am

Hi I bought my house in 1984 for 25k
Lived in it as my only home until 2002
Started renting it out in 2002 and became non resident at the same time.
If I evict the tenant and move back into the property myself as soon as the tenant has vacated and sold the property whilst living there at what period will I be liable for CGT.

bd6759
Posts:4298
Joined:Sat Feb 01, 2014 3:26 pm

Re: Non resident selling property

Postby bd6759 » Fri Apr 28, 2023 7:22 am

The gain is time apportioned between exempt and non-exempt periods.
The exemption will apply to 1984-2002 and to the final 9 months of ownership.

kanrent
Posts:123
Joined:Tue Dec 16, 2014 8:20 am

Re: Non resident selling property

Postby kanrent » Fri Apr 28, 2023 8:09 am

If I move into the property after the tenant has vacated and become UK resident again and use the house as my only and main home for say a year or 2 before I sell am I still liable for CGT even though it's not being rented out

bd6759
Posts:4298
Joined:Sat Feb 01, 2014 3:26 pm

Re: Non resident selling property

Postby bd6759 » Fri Apr 28, 2023 1:01 pm

The period where it was not used as a residence is not exempt.

Whether a final period of occupation would be a period of residence is open to conjecture, but it is impossible to hypothesise.

billypiper
Posts:114
Joined:Wed Aug 06, 2008 4:10 pm

Re: Non resident selling property

Postby billypiper » Fri Apr 28, 2023 2:28 pm

If you are non resident then you are not chargeable to UK tax.

There are rules to obtain non residence which i assume you are are aware of



Dennis

Taxesclear Ltd

07802704840

someone
Posts:699
Joined:Mon Feb 13, 2017 10:09 am

Re: Non resident selling property

Postby someone » Fri Apr 28, 2023 4:56 pm

If you are non resident then you are not chargeable to UK tax.
Comments like this are scary!

While that might be a generally true statement, on a UK tax forum with an OP that starts
Hi I bought my house in 1984 for 25k
Lived in it as my only home until 2002
Started renting it out in 2002 and became non resident at the same time.
That is a pretty far out assumption that the property isn't in the UK.

The fact that there has been so much hoo-hah about huge penalties for failure to file a NRCGT tax return over the last 7 years even when the tax due is zero, it's... well, I'm lost for words.

I think (and the OP would be well advised to take my comments with a pinch of salt too) that there are at least three different ways that the OP can calculate their taxable gain and can chose the one that will incur the least tax - and I suspect they will give wildly different amounts of tax due too so worth checking all of them, but it seems unlikely that the OP won't have to deal with NRCGT at all even if just to fill in a form and submit it on time.

billypiper
Posts:114
Joined:Wed Aug 06, 2008 4:10 pm

Re: Non resident selling property

Postby billypiper » Fri Apr 28, 2023 5:32 pm

Someone


So everybody who is non resident ie everyone in the world outside the UK is chargeable' to UK capital gain tax

Wake up and smell the coffee

Dennis 07802704840

Taxesclear Ltd

someone
Posts:699
Joined:Mon Feb 13, 2017 10:09 am

Re: Non resident selling property

Postby someone » Fri Apr 28, 2023 6:06 pm

Someone


So everybody who is non resident ie everyone in the world outside the UK is chargeable' to UK capital gain tax

Wake up and smell the coffee

Dennis 07802704840

Taxesclear Ltd
Everybody in the world who sells a UK situs residential property is chargeable to UK capital gains tax (with the possible exception of people like diplomats who I have this vague idea don't pay UK tax and might get special rules)

https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-residential-property

someone
Posts:699
Joined:Mon Feb 13, 2017 10:09 am

Re: Non resident selling property

Postby someone » Fri Apr 28, 2023 6:09 pm

And, making the wild assumption that the OP is talking about a UK situs property, they should have been paying UK tax on their rental income too - might even have been deducted at source by their agent or tenant:

https://www.gov.uk/government/publications/non-resident-landord-guidance-notes-for-letting-agents-and-tenants-non-resident-landlords-scheme-guidance-notes/what-the-non-resident-landlords-scheme-is

darthblingbling
Posts:711
Joined:Wed Aug 02, 2017 9:09 pm

Re: Non resident selling property

Postby darthblingbling » Sat Apr 29, 2023 5:37 am

Dennis's post history is banger after banger of bad tax advice


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