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Where Taxpayers and Advisers Meet

Moving back to the UK after 20 years. CGT on sale of UK BTL.

chocaholic
Posts:22
Joined:Wed Aug 06, 2008 3:26 pm
Moving back to the UK after 20 years. CGT on sale of UK BTL.

Postby chocaholic » Sun Feb 20, 2022 8:49 pm

So, I have lived in Germany for the last 20 years. I will probably return to the UK in July or so.

I hope to sell my UK BTL at around July. The BTL sale gains would not be taxable if I was overseas, as I am selling for the same price as it was worth in 2015, when I was an expat. However, since I will be back in the UK, is there a way to avoid CGT? Does it count at all in my favour that I have been an expat for years, and visited the UK infrequently.
I will be coming to the UK with my spouse and my 2 school going children.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Moving back to the UK after 20 years. CGT on sale of UK BTL.

Postby maths » Mon Feb 21, 2022 9:20 pm

By selling as a non-UK resident it would appear no CGT arises as no change in value since April 2015.

Selling as a UK resident would presumably give rise to a CGT charge as any gain is based on original purchase price. If the property has ever been your sole/main residence since purchase some relief would be available but it does seem it has always been a BTL?

A transfer of a % of your beneficial interest to your spouse prior to sale may mitigate any overall CGT charge.

chocaholic
Posts:22
Joined:Wed Aug 06, 2008 3:26 pm

Re: Moving back to the UK after 20 years. CGT on sale of UK BTL.

Postby chocaholic » Tue Feb 22, 2022 3:13 pm

Thank you.


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