cgt non resident landlords

[salavan]

hi does anyone know how hmrc will work out cgt for british non resident landlords.
i brought my house in 1986 and been a non resident landlord since 2005
for example if i sell in 2016 will i only pay cgt on the gain for 1 year, i doubt this very much
im not sure is there are any definate rules been decided on this, i would appreciate any advice
thank you
regard salavan

[GlobalTaxAdviser]

It will be rebased to April 2015 so any gains after April 2015 will be liable to CGT

I understand the exact details will be published in the early part of 2015

Kind Regards

Sash

[lucapooka]

Hello, I appolgise, as new member, for hi-jacking another´s thread but the subject seems entirely relevant to my circumstances and may even add to overall understand of this topic. I am seeking clarification on the following:

Since 2006 I have been collecting rent on my property in the UK, and declaring duly this income to HMRC. I have not been resident in the UK for 8 years and have spent only one month there during that entire period. I continue to live outside the UK. The house if now on the market and due for sale completion in January.

So, my questions: Am I liable to CGT in those circumstances? Would I be liable for CGT if I plough the funds from the sale into another property in the UK. If the sale falls through and I don´t find another buyer before March 15, will that make a difference to my CGT liability?

Thanks in advance for your kind consideration of my enquiry.

Luca

[King_Maker]

It is possible that time apportionment will be an alternative option - or even neither re-basing nor time apportionment if the taxpayer so wishes.

[lucapooka]

Thank you for you reply but I am not readily familiar with tax matters. Are you saying that I am indeed liable for CGT at present and your response is offering a solution to that liability? If so, could you be less jargonistic as that would help my understanding. Regards, Luca

[King_Maker]

Thank you for you reply but I am not readily familiar with tax matters. Are you saying that I am indeed liable for CGT at present and your response is offering a solution to that liability? If so, could you be less jargonistic as that would help my understanding. Regards, Luca

My post was an addendum to that from GlobalTaxAdviser's answer.

Although it looks like a reply to your question, it is not, as your question was not visible when I posted earlier today - perhaps a time zone glitch.

[lucapooka]

Ah, I see. Sorry, I guess that is the problem with hijacking a thread. I think my situation is identical to the original question other than I will be realizing the gain before the new legislation. On that basis, would I still be liable to CGT?

[GlobalTaxAdviser]

Hello

Previously if you were non resident in the UK for 5 years there was no CGT

From April 2015 all non residents will be liable for CGT. The Property value gets an cost uplift at market values probably from April 2015

Any gains you made after that date will be taxed

You may also be liable for CGT in your home country but tax implications will depend on the double tax treaty

There will be more clarity when the finance bill for 2015 is released early next year.

Do revert if you have any further questions

Thank you

Sash

[lucapooka]

Sash, thanks for your clarification. I will take that I am not liable in the UK for a gain realized before April 2015. But, can I keep the proceeds of the sale in the UK (whilst paying any CGT liability I have in my country of residence) and even buy another property after April 2015? Would that matter?

[GlobalTaxAdviser]

Hi Luca

No CGT before April 2015 if you were non resident for five years

Yes you can keep the proceeds in the UK and buy another property in the UK. There isn't any rollover relief that will defer any gain

One other point that could affect your future decisions the government has released a paper that could result in non residents losing their personal allowance.

Kind Regards

Sash