Hello.

We are in the process of selling our UK house (we lived in that house and then rented it after moving to the US about 2 years ago). We have no other property in the UK or the US.


I hear that in the new UK budget the capital gains tax (CGT) may increase significantly. Would that CGT increase impact my tax situation for the above mentioned property?

Potentially yes, although rumour has it that CGT won’t increase on property, only on things like stocks & shares. But nobody can know for sure until it’s announced.

https://www.thetimes.com/uk/politics...dget-mlxn87bgh

Our scenario is neither second home (the house we are selling is the only property we have) and not buy to let since inception (it was owner occupied, but then let out because of our move to the US). I wasn’t sure if situations like ours were in scope of this tax change.

I didn't mention it being a second home, but the same percentage of CGT is charged on all residential properties that come under the scope, so yours would be treated the same anyway. You'd currently have to pay UK CGT on the sale, so the only question will be if the CGT amount will go up in the budget. At the moment, the news is saying that any increase won't affect properties, but we have no way of knowing if that is the case, and if not, when the change in CGT amounts will come in to effect.

Thank you . Very helpful input. I will keep my fingers crossed. Hoping the proposal would not impact house sales.

I don't think it was very helpful at all, I wish I had a crystal ball and could you tell you for sure! I'm watching it closely too as we have various properties in the UK, and we've done some juggling of things ahead of the budget just in case. Unfortunately it's just a case of wait and see, unless you can rush your sale through?

Good luck.

we just accepted the offer. Will take few months to close.

Congratulations, I hope the process goes smoothly. Over the last 7 years we have bought houses here in England, as have our son and daughter and it all seems to take about 3 months minimum.


The last government has increased capital gains tax several times on the sale of shares since we moved back a few years ago so another increase is to be expected

hello. I read that the capital gains tax rate has increased but not on residential property. Wondering if our case is considered as. Residential property or not? Any intel you can share? At what rate would we be taxed for the proposed sale? Thank you

Yes, it would be residential.

The HMRC website has a useful calculator to help you work out roughly what you’ll have to pay - https://www.tax.service.gov.uk/calcu.../disposal-date

thank you. Your input is very helpful.