Capital Gains Tax UK Rental Property
Jul 8th 2015, 2:02 pm
#1
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Thread Starter
Joined: May 2013
Posts: 11
Capital Gains Tax UK Rental Property
Hello,
Has anyone had any experience in selling their UK property after they have lived in the US for a number of years.
We currently rent our UK place out, but when we sell this we want to do so in the most tax efficient way possible.
We want to avoid having one of us moving back for 90 days to sell it as our primary residence. Is any differential made between primary residence and primary UK residence? How do our friends at HMRC get proof of occupancy, and what would we have to provide for these 90 days if we did have to go back to avoid paying CGT?
Has anyone had any experience in selling their UK property after they have lived in the US for a number of years.
We currently rent our UK place out, but when we sell this we want to do so in the most tax efficient way possible.
We want to avoid having one of us moving back for 90 days to sell it as our primary residence. Is any differential made between primary residence and primary UK residence? How do our friends at HMRC get proof of occupancy, and what would we have to provide for these 90 days if we did have to go back to avoid paying CGT?
Jul 8th 2015, 2:08 pm
#2
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: Capital Gains Tax UK Rental Property
You're facing US CGT rules - and the US IRS only exempts CGT if you've lived in it for two of the past five years, so three years after you move out of it, you're on the hook.
It is also impossible to roll a gain on non-US property into a purchase of US property.
In short, if you sell you're going to be paying US CGT.
It is also impossible to roll a gain on non-US property into a purchase of US property.
In short, if you sell you're going to be paying US CGT.
Last edited by Pulaski; Jul 8th 2015 at 2:13 pm.
Jul 8th 2015, 3:48 pm
#3
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Joined: Dec 2005
Posts: 88,017
Re: Capital Gains Tax UK Rental Property
Hello,
Has anyone had any experience in selling their UK property after they have lived in the US for a number of years.
We currently rent our UK place out, but when we sell this we want to do so in the most tax efficient way possible.
We want to avoid having one of us moving back for 90 days to sell it as our primary residence. Is any differential made between primary residence and primary UK residence? How do our friends at HMRC get proof of occupancy, and what would we have to provide for these 90 days if we did have to go back to avoid paying CGT?
Has anyone had any experience in selling their UK property after they have lived in the US for a number of years.
We currently rent our UK place out, but when we sell this we want to do so in the most tax efficient way possible.
We want to avoid having one of us moving back for 90 days to sell it as our primary residence. Is any differential made between primary residence and primary UK residence? How do our friends at HMRC get proof of occupancy, and what would we have to provide for these 90 days if we did have to go back to avoid paying CGT?
Jul 8th 2015, 4:24 pm
#4
Forum Regular
Joined: Mar 2014
Location: New York, NY
Posts: 186
Re: Capital Gains Tax UK Rental Property
We sold our London flat at the end of 2013 but for UK tax purposes, the rules have changed recently. There is now only 18 months of personal exemption of a rental property that you once lived in i.e. 18 months after having rented out, you'll start attracting CG on any profit. I think this came into effect on any property sales after April 2014.
Jul 8th 2015, 4:32 pm
#5
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: Capital Gains Tax UK Rental Property
We sold our London flat at the end of 2013 but for UK tax purposes, the rules have changed recently. There is now only 18 months of personal exemption of a rental property that you once lived in i.e. 18 months after having rented out, you'll start attracting CG on any profit. I think this came into effect on any property sales after April 2014.
Jul 9th 2015, 12:06 pm
#6
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Joined: May 2013
Posts: 11
Re: Capital Gains Tax UK Rental Property
Anyone able to give any advice on Non-Domeciled status and how that could help with tax matters? Does this still have an effect on inheritance tax?
