This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Returning to the UK - CGT, Split Year Treatment and on-going tax

baconsarnie
Posts: 6
Joined: Fri Apr 01, 2016 10:53 am

Returning to the UK - CGT, Split Year Treatment and on-going tax

Postby baconsarnie » Tue Jun 07, 2016 12:13 am

Hi everyone

We moved overseas in February 2012 and will be returning in August this year, non tax resident for 2012/13, 2013,14, 2014,15 and 2015/16. We have made a substantial gain on our property that we have just sold and will at some point be brining this money into the UK. In the meantime it will earn interest that we will remit, periodically to the UK.

I have a few questions. We will qualify for split year treatment for this year so won't pay CGT on the gain from the property and I don't believe this money will be taxed when it is brought in. However, what happens to the interest? That is now taxable income so I assume we just declare on our annual tax return and apply for relief for double taxation at the time?

We will be returning just before the 5 year cut off so will be classed as temporary non-resident. Can anyone confirm that this is only really relevant where you have sold/made gains on things you held before you moved out of the UK?

Thanks in advance.

nikkisizer
Posts: 342
Joined: Fri Nov 04, 2011 5:26 pm
Contact:

Re: Returning to the UK - CGT, Split Year Treatment and on-going tax

Postby nikkisizer » Tue Jun 07, 2016 8:04 am

Hi baconsarnie,

Unfortunately it is likely that you will be liable for capital gains tax as the rules regarding capital gains tax for UK Non-residents changed significantly with effect from the 2015/16 tax year in that a UK Non-resident owner who makes a disposal of a UK residential property is now required to file a Non Resident Capital Gains Tax Return (NRCGT) to HMRC within 30 days of completion of the disposal.

The NRCGT return is in addition to your self assessment tax return which must also still be filed by the required deadline.

Computations must be provided along with details of any exemptions or reliefs being claimed and any elections to use one of the alternative methods of calculating the post 06 April 2015 element of the gain.

If the disposal is not reported within 30 days a penalty might be issued and deferment of any payment of capital gains tax due until the self assessment deadline may not be granted and may become immediately payable.

The new capital gains rules and necessary computations are complex and as the deadline to submit the NRCGT return is very tight, only being 30 days from disposal, careful planning is of great importance.

I am assuming you are aware of the above.

Happy to help, so if you need any further assistance please do not hesitate to contact me.
Kind regards,

Nikki Sizer

Sizer & Co Accountants
nikki@sizeraccountants.com
[url]http://www.sizeraccountants.com[/url]

Birmingham - London - Manchester - Leeds

nikkisizer
Posts: 342
Joined: Fri Nov 04, 2011 5:26 pm
Contact:

Re: Returning to the UK - CGT, Split Year Treatment and on-going tax

Postby nikkisizer » Tue Jun 07, 2016 8:10 am

Hi baconsarnie,

For your information and to be clear, my previous answer is based on the assumption that you have sold residential UK property.
Kind regards,

Nikki Sizer

Sizer & Co Accountants
nikki@sizeraccountants.com
[url]http://www.sizeraccountants.com[/url]

Birmingham - London - Manchester - Leeds

baconsarnie
Posts: 6
Joined: Fri Apr 01, 2016 10:53 am

Re: Returning to the UK - CGT, Split Year Treatment and on-going tax

Postby baconsarnie » Tue Jun 07, 2016 9:08 am

Hi Nikki

Apologies I wasn't very clear. We have disposed of our house here not the house we have the in the UK. The UK has been rented out and we will live there when we return. We are aware of the changes to the tax rules.

Our worry more is about the gain and bringing it back to the UK.

Thanks again.


Return to “International Tax”