sarahw

So it looks like anyone who's still got a house in the UK could get hit with capital gains tax from April 2015 - time to try and sell up again I think!!

http://www.bbc.co.uk/news/business-25219129

janiejones

It applies to us already. Even though we live here, as former residents we're still domiciled in the UK for tax purposes, and subject to CGT after three years. That's how I understood it anyway, but I'm not a tax lawyer or accountant.

JAJ

It's normally 5 years outside the U.K. to escape capital gains tax, at least for now.

Domicile, which impacts Inheritance Tax, is different. It is possible to lose domicile, but many/most emigrants from Britain do not sever ties sufficiently (and establish a permanent home elsewhere) to do so.

Perhaps, before panic, etc, set in, do a calculation on how much U.K. CGT you would actually have to pay if the tax rule changed?

jmh

There's two different circumstances. 1. The overseas investor who has not lived in the property who did not have to pay CGT even though residents did. This is now changing so that they will. 2. People who were resident in the house but have let it out. They used to get 5 years grace period before they had to pay CGT. I think this may be coming down to 3 years, so it will affect people here.

As JAJ suggests, have a look at the IRD website for how you work out how much you would have to pay. Assuming you have no other UK taxable income, you may find that the gain falls within your tax free allowance. Note also that the cost of selling the property and past improvements that may have increased the value of the property are deductible. If you plan to sell you might need to think about the timing (i.e. at the start of the tax year so you have no other rental income). If you don't plan to sell, well you don't have a problem.

jmh

This link might have some useful info: http://www2.accaglobal.com/uk/member...3/cgt_property