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Where Taxpayers and Advisers Meet

CGT on my flat when forced to leave uk

Joined:Wed Aug 06, 2008 3:12 pm

Postby ccollins » Wed Aug 11, 2004 3:13 am

Situation: purchased flat in London in 1996 solely in my name as my permanent private residence. My girlfriend moved in in 1997 and stayed in the property rent free for the whole period until it was sold (Aug 2001). I Became student in 2000 and was asked to go to Germany in June 2001 as part of my studies. Research council paid for a place to live in Germany for me from June 2001 until March 2003.
I sold my flat in London (exchanged contracts) in August 2001 (whilst I was away in Germany) and made a profit of ~£130,000. I subsequently (May 2002) purchased a flat in Scotland which I occupied in March 2003, after returning from Germany.
The situation with being forced to move to Germany has now made me worried I could be liable for CGT on some of the profit I made from the Flat sale in London.
Also, might I have a liability if I ever sell the Scottish flat?

D Sum
Joined:Wed Aug 06, 2008 3:12 pm

Postby D Sum » Thu Aug 12, 2004 1:24 am

On the information provided, it would seem that there is no CGT on the London flat.

As I understand it, you stayed in the property from 1996 till you went to Germany in 2000. The final year of ownership in which you were away would be exempt from CGT.

The Scottish Flat may however attract some CGT charge if sold, as it was not occupied in its first year of ownership, however, depending when it is sold, a combinations of PPR, Taper, and Annual Exemptions may reduce the liability to a manageable amount.

Hope this helps


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