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Where Taxpayers and Advisers Meet

CGT Non Resident/Resident Property April 15

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Joined: Wed Aug 06, 2008 4:00 pm

CGT Non Resident/Resident Property April 15

Postby POOLE77 » Thu Mar 12, 2015 3:29 am

Dear Sir/Madam,
I would be grateful for any advice on the following:-
I have been non resident since about October 2005. I continue to have a house in the UK which is let out, and I complete a S.A. each year, detailing my rental income. I bought the house in June 2000. I also lived in the house for 6 months in 2012 tax year to effect improvements,
I do not own any other property in the UK or overseas. I currently do not pay tax in the overseas resident country, (no earnings). My income currently is solely from the UK.
After reading the proposed new legislation in the finance bill 2015 and further comment, regarding the change to CGT liability for Non Residents owning property in the UK.
Am I right in believing the following?
When I decide to sell/dispose of my house, in the tax year I sell my house. 1) If I live in it for at least 90 midnights, 2) Stay in the UK for over 183days and become tax resident, that year. (Basically I would return to the UK for most of that tax year and reside there.)
I may not be liable for CGT? If so what records/evidence should I keep to support this.
For example getting UK border agency to stamp my entries and exists to the UK, Utility bills etc.
If the above is not the case; do I arrange a valuation of my house, for the 6th April 2015? as I believe CTG, will be estimated from rebasing the value of property from this date.
I also presume I will be able to benefit from Private Residents Relief, Lettings Relief, last 18 months relief? and annual CGT allowance.

Thank you in advance for any help you can give my enquiry.

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Joined: Wed Aug 06, 2008 3:25 pm

Re: CGT Non Resident/Resident Property April 15

Postby maths » Sat Mar 14, 2015 1:02 am

Effective 6 April 2015 non-UK residents are liable to CGT on private residences.

Broadly, only the gain accruing on or after this date will be subject to CGT. There are two different calculations
which may be carried out to determine the gain one of which involves a valuation as at 6.4.15.

To obtain PPR relief post 6.4.15 doesn't require residence in the UK. If resident overseas then to claim PPR relief must spend at least 90 nights in property (but not necessary to be UK resident).

Once property qualifies for PPR relief then last 18 months exempt and lettings relief available.

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Re: CGT Non Resident/Resident Property April 15

Postby POOLE77 » Thu Mar 19, 2015 10:52 am

Thanks Maths for your succinct and useful information.

Just one more question!
If someone had been Non-Resident for approximately 10 years, then came back to
the UK and lived in their only house, (that they have lived in before those 10 years
for about 5 years ) and became Resident and Tax Resident again. They then lived
there in their own only house for 1 2 3 4 5 or ‘x’ number of years, being UK
resident and tax resident, only taking overseas breaks for holidays etc.
When the person finally decides to sell their only own house and move on, are
they then still subject to potential CGT (less allowance and reliefs) for the
10 Non Resident years. I believe under the old arrangements, a Non Resident could
come back to their house, live there for about 2 years + (show supporting evidence)
as a UK resident and UK tax resident and sell, and move on with no capital gains to

Any help again would be greatly appreciated.


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Joined: Wed Aug 06, 2008 1:52 pm

Re: CGT Non Resident/Resident Property April 15

Postby marrow » Sun Mar 22, 2015 1:12 am

Subject to certain deemed ppr periods you would be liable to CGT for the non occupied periods - this has always been the case and no changes have been made

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Re: CGT Non Resident/Resident Property April 15

Postby maths » Sun Mar 22, 2015 9:48 pm

As Marrow states, as a UK resident you will be exposed to cgt on sale for periods not subject to exemption/relief.

Thus the 10 years absence will be subject to cgt (unless qualifying for relief).

Ian McTernan CTA
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Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford

Re: CGT Non Resident/Resident Property April 15

Postby Ian McTernan CTA » Mon Mar 23, 2015 1:11 pm

Probably need to establish that the residence actually qualifies for PPR, which tends to go along the lines of 'permanent residence'. If the intention at the outset if to only live in it for 90 days, then this could be challenged by HMRC.

To summarise the new rules on non-res owners of property, you will be taxed on the gain accruing after April of this year. So make sure you get an up to date valuation from an independent third party as to the maximum achievable selling price so that when you do come to sell, you have a solid basis on which to base any calculation.
McTernan Associates Ltd
Chartered Tax Advisers
Email through link on website:

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Re: CGT Non Resident/Resident Property April 15

Postby POOLE77 » Thu Mar 26, 2015 6:34 am

Thank you everybody for your helpful advice.

I will now get a valuation to reflect the maximum achievable price, for my house in Poole, as of 6th April 2015, iN fact in two weeks time!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Best Regards to all respondents,

Keith POOLE.

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