Capital Gains Tax

Old Dec 15th 2015, 1:47 am
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Default Capital Gains Tax

Hi,

I have been trying to get my head around a CGT few scenarios I will be facing in 2016 - I would be grateful for any help received.

About Me: UK National: I left the UK for FT employment in July 2008 and was deemed 'non-resident' by HMRC - I have 2 UK rental properties for which I have filed SA's on their rental income as a NRL.

I may be looking to return to the UK as of Nov 2016.

I am looking to sell my properties in order to finance our family 'home' once we return to the UK. However I am a bit confused on how much CGT I will have to pay.

House 1 bought in 2003: PP 225K (plus 5k fees) - Estate Agent valuation in April 2015: 310k. Current valuation: 340k.
I lived in this house from Aug 2003-April 2006. It was empty from Apr 2006 until July 2008, and has been rented out from Aug 2008 until present day.

Flat bought in 2005: PP 165k (plus 5k fees) - Estate Agent valuation in April 2015: 220k. Current valuation: 275k. This is a 'Buy to Let' property.
I lived here from April 2006 until I left the UK in July 2008. Has been rented out from July 2008-present day.

Could you please advise on my how much CGT I am looking to pay, assuming I nominate the House as my PPR.Also, on the off chance that I decide to sell in the 16-'17 tax year, would I pay CGT as a normal 'resident' or will I be classed as 'non-resident' until I return in Nov 2016?


Thank you for your help.
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Old Dec 15th 2015, 11:36 am
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Default Re: Capital Gains Tax

I started to write a lengthy and detailed explanation but stopped as professional advice, particularly of a specific and detailed nature should be paid for. No one appreciates what they get for free.

Basic info on new rules re CGT here: UK Capital Gains Tax changes for non-resident UK Property owners | Financial Planning in the UAE
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Old Dec 15th 2015, 11:41 am
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Default Re: Capital Gains Tax

Originally Posted by Meow View Post
I started to write a lengthy and detailed explanation but stopped as professional advice, particularly of a specific and detailed nature should be paid for. No one appreciates what they get for free.

Basic info on new rules re CGT here: UK Capital Gains Tax changes for non-resident UK Property owners | Financial Planning in the UAE
Hi,

Thank you for your reply. Any advice is appreciated. Please send me a PM as I am happy to pay for advice received.
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Old Dec 15th 2015, 12:50 pm
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Default Re: Capital Gains Tax

now we're talking.
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Old Dec 15th 2015, 1:56 pm
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MEOW, you and MILLHOUSE i would luv to meet some day for a drink or two - and i mean that sincerely
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Old Dec 15th 2015, 3:36 pm
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Default Re: Capital Gains Tax

Originally Posted by imi7 View Post
Hi,

Thank you for your reply. Any advice is appreciated. Please send me a PM as I am happy to pay for advice received.
I'll offer you the advice at a very reasonable rate.

Terms: it will likely be incorrect and you'll have to talk to Meow after to rectify
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Old Dec 16th 2015, 3:08 am
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Default Re: Capital Gains Tax

Originally Posted by mission View Post
MEOW, you and MILLHOUSE i would luv to meet some day for a drink or two - and i mean that sincerely
you're the poster I'd most like to meet too. what a connection.
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Old Dec 16th 2015, 8:54 am
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Default Re: Capital Gains Tax

Originally Posted by Millhouse View Post
you're the poster I'd most like to meet too. what a connection.
Lets do it sometime in the new year
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Old Dec 16th 2015, 10:22 am
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Originally Posted by mission View Post
MEOW, you and MILLHOUSE i would luv to meet some day for a drink or two - and i mean that sincerely
Sarcasm does it for you?
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Old Dec 16th 2015, 10:32 am
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Default Re: Capital Gains Tax

Originally Posted by Meow View Post
Sarcasm does it for you?
bah humbug!
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Old Dec 20th 2015, 8:34 pm
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Default Re: Capital Gains Tax

If you need UK tax advice I would say get it in UK (but not K**G). I don't think you could ever sue someone here if you were given poor advice.
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Old Dec 20th 2015, 9:11 pm
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Default Re: Capital Gains Tax

Generally speaking, the gain between purchase and sale is spread evenly (i.e. any interim valuations are irrelevant) over the period you owned it, then certain periods are exempt, so any gain attributed (straight line) to when you actually lived in the property is not taxable, and under some circumstances the period when you were working overseas can be free of tax (you are "deemed" to have lived in the property). Then there are deductions for inflation (indexation allowance), and for any capital expenditures you made, and perhaps some expenses.
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