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Where Taxpayers and Advisers Meet

CGT on selling a property while living abroad

Posts: 2
Joined: Wed Aug 06, 2008 3:03 pm

Postby Sunil » Tue Jun 17, 2003 11:35 am


I've owned a property for over 6years now. During this time I've lived it in occasionaly and rented it out at other times.

For the past 18months I've been working in the US and look to continue to do so for the next 6-12months.

The propery price has risen from 85k to 200k.
If I was to sell my property would I be subject to CGT? If so, what is the best way to minimise the CGT.

Thanks for your help!

Posts: 7
Joined: Wed Aug 06, 2008 3:04 pm

Postby EXPATAX@BLUEYONDER.C » Tue Jul 01, 2003 10:29 am


I am assuming you are a UK domiciled individual and do not hold a US "green card".

Assuming you lived in the property as your principal private residence for part of the time, there are various releifs and exemptions avalialbe to you which will reduce your UK tax exposure. Assuming you are not outside the UK for 5 years there will be a potentional charge to CGT upon your return to the UK even if sold in a year of non reisdence.

Also if you sell whilst a resident of the US you will also have to declare for both Federal and State taxes. You will need to find out the gain in US $ as well. ie what was the exchange rate on day of purchase for the cost.

As a rented property you also should be declaring the rental income on your UK and US tax returns.

Obviously the US CGT rate is now 15% but this could be avoided if you wait to sell the property after returning to the UK plus you reoccupy the property prior to sale.

For more detailed advice on both UK & US tax matters please send me an email.


US Enrolled Agent

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