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Where Taxpayers and Advisers Meet

resident/nonresident house sale

erizo@zahav.net.il
Posts:1
Joined:Wed Aug 06, 2008 3:03 pm

Postby erizo@zahav.net.il » Thu Apr 24, 2003 9:45 am

I was born and raised in the uk until age 30. The last 7 years I have been living in Israel and have obtained Israeli nationality in addition to my british nationality. During this time, I have only returned to England for short holidays. I am currently selling my flat in london which was given to me by my father 15 years ago and which I used to live in. It has been rented out for the last 7 years, during which time I have been paying tax on the rental income. 2 questions: 1)Will I have to pay Capital Gains Tax on the sale of the present flat? 2)I am considering buying a less expensive flat in another part of London with the proceeds and I also intend to rent this flat out. Would I have to pay CGT on this "new" flat if I come to sell it in the future? And does this depend on whether I officially live in the flat at some time before I sell it?

Taxbar
Posts:1187
Joined:Wed Aug 06, 2008 2:19 pm

Postby Taxbar » Mon Apr 28, 2003 3:55 am

Shalom Erizo,

The answer to your question as to whether CGT is payable in the UK for non-residents selling property is no. I have assumed you are a non-resident of the UK and an Israeli tax resident.

What you have to consider is the Israeli tax consequences. The law has recently changed and depending on your status you may have an Israeli taxliability.

For the future you also need to think about UK I nheritance Tax and consider whether to plan to avoid that. A UK asset is taxable on the basis of its location regardless of the Residence/domicile of its owner.

You may also require a UK will to assist in transfer on death.

I can be contacted on a professional basis on my
e-mail:

Shalom
Daniel M Feingold
Strategic Tax Planning
International& UK Tax Consultants
Treen House
72 Park Road
Prestwich Manchester
M25 0FA
sedrate@easynet.co.uk


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