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Where Taxpayers and Advisers Meet

UK CGT for NON UK tax resident?

gordonH
Posts:2
Joined:Sun Oct 17, 2021 8:02 am
UK CGT for NON UK tax resident?

Postby gordonH » Sun Oct 17, 2021 8:54 am

Hello
Brief background.
I am a UK citizen from birth. Retired with UK old age pension as sole income. So have not filed any tax returns as income lower than UK threshold.
I own a small lease flat in the UK, which is not and never has been let, it is for me to use when I make a visit to the UK .
Over the last 4 years I have built and completed a house in an EU country, which I now want to sell.
At the end of 2020 the UK finally left the EU, and in order to fully complete and register the house and with Covid travelling issues, I had no choice other than to take outside residency in the EU country (to avoid the 90 day Schengen rules).
So now I am a UK citizen(passport holder) but with EU residency, and am also a Tax resident of that country, since July 2021. (officially).

In this EU country a seller of a property has options when selling their property. If it is a main residential home,(which I now class mine as) then one can choose to reinvest in another main property anywhere in the EU (not now inc. UK), and then only pay CGT on that part of the sale value, not reinvested, and one has 36 months following the sale to do that. And CGT is not payable in that country until a reinvestment is made or paid in full in no reinvestment is made.

So the question is, do I have to inform HMRC of that sale at all, and be liable to UK CGT on the full capital gain, as that would mean that I would not have all money to make a reinvestment in another EU property, which would reduce the tax liability in that country.
Any advice appreciated

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

Re: UK CGT for NON UK tax resident?

Postby pawncob » Tue Oct 19, 2021 12:02 pm

https://www.gov.uk/government/publications/dual-residents-hs302-self-assessment-helpsheet/dual-residents-2021-hs302
With a pinch of salt take what I say, but don't exceed your RDA

gordonH
Posts:2
Joined:Sun Oct 17, 2021 8:02 am

Re: UK CGT for NON UK tax resident?

Postby gordonH » Tue Oct 19, 2021 1:17 pm

Hi
Yes I have looked at that gov page. But as I am sure you know its not always so clear cut.
The only place where I have a piece of paper confirming residency and tax residency is in the EU.
Other than a passport and a property in the UK, and receive my old age pension from UK DWP. I simply visit my property in UK in the summer, when it is too hot for me overseas, so yes I spend maybe 3 mnths in the UK.
SO the real question is when it comes to selling a property, if I am classed as a UK resident, then the property overseas is a second home, but gthe other country see it as my main residence (because I am a tax resident there).
So if the UK consider me to be a dual resident, can I elect to tell them which is my main house??
Such that if the overseas property is accepted as my principle property then there would be no CGT to pay in the UK.?


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