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Where Taxpayers and Advisers Meet

Overseas house our main home. CGT in uk from sale?

Paxosstu
Posts:1
Joined:Sun Mar 28, 2021 7:42 pm
Overseas house our main home. CGT in uk from sale?

Postby Paxosstu » Sun Mar 28, 2021 8:32 pm

Hi everyone. Question for the experts.
In 2006 we rented our UK house out and went to Greece for a year out. We ended up staying there 13yrs, year round. We used to come back to UK for 2-3wks at xmas, the other 49wks we were in Greece

We obtained non resident landlord status here in Uk on our rented UK house and have been completing HMRC tax returns for that entire period and paying tax on that income

My question is Regards Greece. We both had residence permits there, both ended up with businesses there and were tax payers there. In 2010 we bought an old ruin there and renovated it (mostly ourself) with monies earnt there and paid tax in Greece on that money. The house was our main home for 10yrs.

We returned to UK in Oct 2019 as I took a job with my old employer and we decided to come home. We put our Greek house up for sale and eventually found a buyer in Sept 2020 and we completed sale in Feb 2021 and were paid here in our UK bank accounts

I’m getting conflicting stories about CGT on that money. Is that liable to tax here even though we lived in Greece permanently and was not resident for tax here and we bought and restored the house with monies there which we paid all due taxes on etc, the only thing uk has to do with it is we moved back here after 13yrs. Greece was our principal domicile and we’ve moved into employer supplied property here and our UK property has remained rented.

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: Overseas house our main home. CGT in uk from sale?

Postby Jholm » Mon Mar 29, 2021 2:19 pm

As it is residential UK property, you would be liable to CGT whether resident or not.

Certain reliefs might be available but you should look into the rules for non-residents selling residential property. One option is to uplift the cost for CGT purposes, lifting the cost for CGT purposes to the value at 6/4/2015. This might mitigate a lot of the gain.

strawn
Posts:96
Joined:Fri Jun 01, 2012 10:11 am

Re: Overseas house our main home. CGT in uk from sale?

Postby strawn » Mon Mar 29, 2021 11:12 pm

As it is residential UK property, you would be liable to CGT whether resident or not


Are you sure? I thought the poster said it was his Greek residential property that they've sold.

pandora_boite
Posts:23
Joined:Thu Nov 24, 2011 6:51 pm

Re: Overseas house our main home. CGT in uk from sale?

Postby pandora_boite » Wed Aug 04, 2021 10:53 am

Please could Jholm or anyone else in the know further elaborate what is meant by the following sentence in the previous post:
"One option is to uplift the cost for CGT purposes, lifting the cost for CGT purposes to the value at 6/4/2015"

When is it permissible to uplift the cost, and what dates does one use for this.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Overseas house our main home. CGT in uk from sale?

Postby pawncob » Wed Aug 04, 2021 11:37 am

https://smithandwilliamson.com/en/insights/taxation-of-gains-on-disposals-of-uk-property-by-non-residents-1/
With a pinch of salt take what I say, but don't exceed your RDA

someone
Posts:691
Joined:Mon Feb 13, 2017 10:09 am

Re: Overseas house our main home. CGT in uk from sale?

Postby someone » Wed Aug 04, 2021 2:47 pm

The house was our main home for 10yrs.
I would assume that you'd get 10 years of PPR plus the last nine months

I think that because you sold it while resident in the UK then it is assessed to tax by the UK.
But it's a wild guess based on what I think is fair...


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