pledda

Hello All,

I have a property in UK which I rented out while I was living in Canada for 4 years. A few months ago I returned to the UK and living back in my UK property again. I am now considering selling the property to move to a bigger house. Would I have to pay CGT for the period I was living in Canada? Does it make a difference the fact that I have returned to UK and currently living in the property?

Many Thanks,

spouse of scouse

The amount of CGT you'll be liable for depends on whether there's a chargeable gain after selling the property, how much PRR (Private Residence Relief) you can claim, and if you're eligible for any Letting Relief. This may assist
https://www.gov.uk/tax-sell-home/let-out-part-of-home

Pistolpete2

Be careful when considering the tax implications of moving from being tax resident in one jurisdiction to another, both of which tax you on your world income (including capital gains on residential property). It may not be just HMRC that you have to consider paying some tax to even though you may not have actually sold anything when tax resident elsewhere.

As always, professional tax planning advice is usually in order, particularly when selling UK property just before or just after returning to the UK, even if returning from a non-taxed domicile/jurisdiction. Professionals can often save significant (capital gains) tax, way beyond their fees, quite aside from doing the tax calculation(s) correctly, so it can be money well spent.