Any Capital Gains Due On Sale Of Uk Property

[churchill]

I am in the process of selling a Property in London that I bought 9 years ago for 310,000 - It has been rented for the last 8 years as i have been living in Thailand - Any UK Tax due from the sale proceeds , selling for 500,000 so profit /gain 190,000 sterling .

[haybilly]

I am in the process of selling a Property in London that I bought 9 years ago for 310,000 - It has been rented for the last 8 years as i have been living in Thailand - Any UK Tax due from the sale proceeds , selling for 500,000 so profit /gain 190,000 sterling .

All depends on your UK Tax status--i.e. are you a non-resident for Tax purposes? If so, no CGT. If not, then yes you are liable--any expenses accrued during past 9 years, redecorating, maintaining, repairing etc... are all CGT deductible.

Get an accountant.

[churchill]

I am in the process of selling a Property in London that I bought 9 years ago for 310,000 - It has been rented for the last 8 years as i have been living in Thailand - Any UK Tax due from the sale proceeds , selling for 500,000 so profit /gain 190,000 sterling .

All depends on your UK Tax status--i.e. are you a non-resident for Tax purposes? If so, no CGT. If not, then yes you are liable--any expenses accrued during past 9 years, redecorating, maintaining, repairing etc... are all CGT deductible.

Get an accountant.

Thanks- Yes am non-resident for tax purposes .

[russianrobert]

I am in the process of selling a Property in London that I bought 9 years ago for 310,000 - It has been rented for the last 8 years as i have been living in Thailand - Any UK Tax due from the sale proceeds , selling for 500,000 so profit /gain 190,000 sterling .

All depends on your UK Tax status--i.e. are you a non-resident for Tax purposes? If so, no CGT. If not, then yes you are liable--any expenses accrued during past 9 years, redecorating, maintaining, repairing etc... are all CGT deductible.

Get an accountant.

Thanks- Yes am non-resident for tax purposes .

I'm not an expert and you need to speak to one.But I think because you are a non resident for tax reasons does not mean you are not liable for tax on CGT in the UK. If you have a liability, everyone has to pay CGT in the UK, being non resident does not exclude you from this.

Being non resident excludes your overseas earnings (outside the UK) from tax in the UK.

That's basically as i understand it.

Anyone else?

[TBWG]

I am in the process of selling a Property in London that I bought 9 years ago for 310,000 - It has been rented for the last 8 years as i have been living in Thailand - Any UK Tax due from the sale proceeds , selling for 500,000 so profit /gain 190,000 sterling .

Hi Churchill

Although I am not 100% sure of the situation surely as being your only UK property it is free of CGT. I am under the impression it is only 2nd or more properties which are subject to CGT.

Providing you have been paying UK tax on the rental income I would of thought it is not an issue.

The Land registry which is potentially the only 100% reliable database in the UK would only have 1 property registered in you name and therefore would not flag any potential tax return.

But as previously mentioned legal advice is the only sure way to know.

TBWG

PS On a slightly different note CGT is now at its lowest for decades following Mr Darlings benevolence last year also is now agood time to be shifting property in the UK?

[haybilly]

I am in the process of selling a Property in London that I bought 9 years ago for 310,000 - It has been rented for the last 8 years as i have been living in Thailand - Any UK Tax due from the sale proceeds , selling for 500,000 so profit /gain 190,000 sterling .

All depends on your UK Tax status--i.e. are you a non-resident for Tax purposes? If so, no CGT. If not, then yes you are liable--any expenses accrued during past 9 years, redecorating, maintaining, repairing etc... are all CGT deductible.

Get an accountant.

Thanks- Yes am non-resident for tax purposes .

I'm not an expert and you need to speak to one.But I think because you are a non resident for tax reasons does not mean you are not liable for tax on CGT in the UK. If you have a liability, everyone has to pay CGT in the UK, being non resident does not exclude you from this.

Being non resident excludes your overseas earnings (outside the UK) from tax in the UK.

That's basically as i understand it.

Anyone else?

All I can say is that, having bought and sold 5 properties which I rented out , during last 10 years whilst in Thailand as a non-resident my accountant always maintained that I did not need to pay CGT on the profit from the sale , and, although fortunate enough to sell at a premium never did pay CGT--these, at times were NOT my sole property, and never my residential address.

[egg6447]

Thanks- Yes am non-resident for tax purposes . but your property isn,t. pay up and look big. think your self lucky property has gone down.lol

[egg6447]

All I can say is that, having bought and sold 5 properties which I rented out , during last 10 years whilst in Thailand as a non-resident my accountant always maintained that I did not need to pay CGT on the profit from the sale , and, although fortunate enough to sell at a premium never did pay CGT--these, at times were NOT my sole property, and never my residential address.

this would depend on. did you own the said properties at the same time or were you buying and selling.?. i hope your accountant has given you good advise. as he/she wont be paying the fines or the back tax. the monies earned will be subject to personal tax relief, maybe you didn,t make enough dosh per sale. cant remember the allowance.

[JAS21]

I am in the process of selling a Property in London that I bought 9 years ago for 310,000 - It has been rented for the last 8 years as i have been living in Thailand - Any UK Tax due from the sale proceeds , selling for 500,000 so profit /gain 190,000 sterling .

All depends on your UK Tax status--i.e. are you a non-resident for Tax purposes? If so, no CGT. If not, then yes you are liable--any expenses accrued during past 9 years, redecorating, maintaining, repairing etc... are all CGT deductible.

Get an accountant.

I don't think that is the point..I pay uk tax on my pension and rental income..however I am classed as..not resident and not normally resident and as such can sell property that I own in the Uk without paying CGT and of course invest off shore eg channel isles and no tax on the interest. However if I become resident again within five years..I need to pay!!

If you want confirmation there is a UK web site taxiationweb.co.uk where you can ask questions for free. You do however need to know your tax status. Good idea to post what they say here.

[taxexile]

non res. for more than 12 months , then there is no cgt to pay.

check with your tax office or a competent accountant though.

you can check yourself on the govt. taxation webpages exactly what your liabilities are as a non res. but get it confirmed by an accountant. if you avoid paying anything you should be paying , the penalties are draconian.

i sold 2 properties in the uk and didnt have to pay a penny cgt , advised by an accountant and confirmed by the tax office.

selling for 500,000 so profit /gain 190,000 sterling .

excellent , well done , good for you.

anything kept out of the greedy grasping grubby hands of the uk government is good news.

Edited August 31, 2008 by taxexile

[Denim]

As far as I know, if the place you are selling is your sole residence / property you don't have to pay capital gains tax. It is assumed that if you are selling up you will be buying another place to live. If people had to pay CGT every time they moved it would kill the property market. If , on the other hand , you have more than one property, tax will be due. This is what I was told by my soliciter when I did the same thing.

[haybilly]

non res. for more than 12 months , then there is no cgt to pay.

check with your tax office or a competent accountant though.

you can check yourself on the govt. taxation webpages exactly what your liabilities are as a non res. but get it confirmed by an accountant. if you avoid paying anything you should be paying , the penalties are draconian.

i sold 2 properties in the uk and didnt have to pay a penny cgt , advised by an accountant and confirmed by the tax office.

selling for 500,000 so profit /gain 190,000 sterling .

excellent , well done , good for you.

anything kept out of the greedy grasping grubby hands of the uk government is good news.

My point also--I am not sure that egg6447 is familiar with the Tax regs--at some times during the process I still had properties rented whilst selling others--def. not my sole residences--and NO CGT--my accountant is safe, I'm sure--but appreciate the concern re: back Tax--certainly made a profit on the sales--in some cases 100%.

Edited September 1, 2008 by haybilly

[Chaimai]

Also no expert but if you are outside the UK tax regime, then you are outside the Uk tax regime.

If you were inside the UK tax regime (which you are not) then you could claim that the property was your main residence - no CGT payable.

Consider the scenario where HMRC claimed you were liable - I would be inclined to remove the tenant, return to London and claim the property is your main residence - then change my mind after the sale and emigrate to LoS.

I think you are in the clear - good luck to you.

For others that are still resident, at least Mr darling's "benevolance" has ensured that current UK residents will have a lower CGT liability than before he took office

[JAS21]

As far as I know, if the place you are selling is your sole residence / property you don't have to pay capital gains tax. It is assumed that if you are selling up you will be buying another place to live. If people had to pay CGT every time they moved it would kill the property market. If , on the other hand , you have more than one property, tax will be due. This is what I was told by my soliciter when I did the same thing.

Um..this thread is about someone who is non resident..your solicitor is correct for someone who lives in the UK.

[johnson36]

http://www.direct.gov.uk/en/MoneyTaxAndBen...come/DG_4020890

[grahamhc]

My accountant is part of a large practice (3 story office block) and is on top of everything to do with tax...

I only have one house in england and do not intend to sell (As a safety net investment/home), so the answers do not affect me.

HOWEVER>>>>

I am registered as Ex-PAT and have been to the UK once in 4 years for a holiday.

I am registered with the tax office as "Expat. Tax domiciled in the UK)

My tax demands are sent to me in Thailand, and they stop tax from my savings and income.

When questioning my Accountant about this, I was told that as long as I have property in the UK, I will remain "TAX DOMICILED IN THE UK" and continue to pay tax.

[taxexile]

When questioning my Accountant about this, I was told that as long as I have property in the UK, I will remain "TAX DOMICILED IN THE UK" and continue to pay tax.

you can register yourself non- resident for tax purposes , put your money offshore and pay no tax on the interest.

you will still pay uk taxes on your rental income. have your rental income paid into a uk onshore bank.

[johnson36]

When questioning my Accountant about this, I was told that as long as I have property in the UK, I will remain "TAX DOMICILED IN THE UK" and continue to pay tax.

you can register yourself non- resident for tax purposes , put your money offshore and pay no tax on the interest.

you will still pay uk taxes on your rental income. have your rental income paid into a uk onshore bank.

I think the topic has got side tracked slightly as the OP has stated that he is in the process of selling the property and is asking if there will be any tax to pay on the profit.

http://www.direct.gov.uk/en/MoneyTaxAndBen...come/DG_4020890

[eddieold]

It is my recollection that CGT can be chargeable on a single residential property if the land on which it stands exceeds 1 acre. Probably not relevant in this case - an acre is a lot of land in London.

eddieold