selling property while abroad

[lucileach@msn.com]

i was told that i have to be a non resident for 5 years to enable me not to pay cgt on my property. Do i have to sell it after i have been out of the country 5 years or just not come back for 5 years after selling it to be excempt from cgt. I am moving to spain shortly and would like to sell the property soon.

[Ian McTernan CTA]

If the property was purchased before 6 April 1998 then the 5 year rule does not apply.

If it has been your main residence throughout the period of ownership then provided you sell within three years of leaving it, CGT will not apply through the PPR relief.

If the 5 year rules apply then you can sell it in any tax year after you leave the country and provided you do not return within five years, then tax will not apply in the UK.

You should check the rules in Spain before you sell as you may be liable to Spanish tax on the sale!

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com