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Where Taxpayers and Advisers Meet

CGT on previous primary residence

Posts: 2
Joined: Thu Mar 14, 2019 6:14 pm

CGT on previous primary residence

Postby DDP » Thu Mar 14, 2019 6:34 pm

I am currently tax resident in the Bailwick of Guernsey and own my residence there. I'm planning to move to and become tax resident in the UK, living with family, but keeping my property in Guernsey without selling it for the time being. Please would I become liable for GCT when I sell it. I do not plan to buy property in the UK. Thank you, in advance, for any advice.

Posts: 213
Joined: Wed Aug 02, 2017 9:09 pm

Re: CGT on previous primary residence

Postby darthblingbling » Thu Mar 14, 2019 7:35 pm

Yes, but likely you would get principal private residence relief for a big chunk of the gain, of not all depending one when you do eventually sell.

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

Re: CGT on previous primary residence

Postby pawncob » Fri Mar 15, 2019 6:59 pm

You must also consider where your domicile would be. Are you intending to die in the UK? if so why keep an empty property in Guernsey?
With a pinch of salt take what I say, but don't exceed your RDA

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Joined: Wed Aug 06, 2008 3:25 pm

Re: CGT on previous primary residence

Postby maths » Sat Mar 16, 2019 8:52 pm

It seems likely that on moving lock stock and barrel to the UK that your Guernsey property would cease to qualify as your principle residence for CGT. However, on a sale anytime within 18 months of leaving Guernsey no UK CGT charge would arise (as the last 18 months of ownership are effectively deemed to be a period of occupation).

This 18 month period is currently under review and is likely to reduce to 9 months effective 6 April 2020.

After the 18/9 month period a CGT charge would arise on any gain albeit this is initially likely to be minimal.

If you are currently non-UK domiciled and remain so following the move to the UK, any gain arising from a disposal of the Guernsey property which would be chargeable may be deferred assuming the remittance basis applied at that time.

Posts: 2
Joined: Thu Mar 14, 2019 6:14 pm

Re: CGT on previous primary residence

Postby DDP » Sun Mar 17, 2019 9:22 am

Thank you "maths" for you detailed reply. I thought it might be something like that but I didn't know about the 18/9 month rule.

Thank you, also, for the other two replies.

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