sydneybound

I guess I was trying to bite off too much with my last thread !!! can anyone help me with this quickie please.

SCENARIO:- I have a flat in the uk that I have never lived in, that I rent out & tell the IR about, I then move abroad for x years, I then come back to the uk & I move into the flat for 6 months +

QUESTION:- What CGT is due on the disposal of the flat ?

Am I correct in thinking its calculated on the amount of time the flat is rented MINUS a 'Last 3 years' allowance for having the flat as my Main Residence ?

Does this 3year allowance still apply if i only actually live there for 6months ?

Thanks for any help,

R

sjn2003

This is not straightforward either ! It depends on how long you leave the UK for. There are complex rules re residency which decide the tax regime - if you are going to return within 5 years you need to look into this as well as the CGT calculation.


:lecture:

Enzo&Chloe

Sydney

The tax issues involved are vry complex. As I said on a previous post , you have two tax offfices and you have to satisfy them both. There are *Many* issues involved. Such are , Are you married, your income, views on Exchange rate movements.

I'm sorry if I'm repeating myself , but this issue is far to complicated for a board.

Don

There is a simple enough solution for the UK CGT liability. Stay abroad for at least 5 complete tax years and you won't be liable to UK CGT. You could sell the property at any time, ie you don't have to wait until the 5 years is up.