expats to be charged CGT on disposal of UK property

[wordchild]

According to news stories today (eg the Daily Telegraph) the UK Govt is to introduce a capital gains tax (CGT) on foreigners who sell a UK property, (hitherto they have been exempt). This new tax will also be levied on UK citizens, who are no longer resident in the UK, when they sell their UK property. Its not become law yet ,and it could just be kite flying, however expats who stiil own their UK property need to consider the implications of this.

Edited November 19, 2013 by wordchild

[chiang mai]

When thinking of London property prices, I believe this is called a bull trap.

[KittenKong]

Rather than a "new" tax, isn't this just a proposal to remove the exemption from CGT on property sales that currently applies to non-residents?

It is an exemption that has never made any sense to me, unlike the exemption on shares and other investment gains which of course encourages inward investment in the UK. Investing in residential property in London doesn't help Britain at all, except perhaps through stamp duty.

[wordchild]

Rather than a "new" tax, isn't this just a proposal to remove the exemption from CGT on property sales that currently applies to non-residents?

It is an exemption that has never made any sense to me, unlike the exemption on shares and other investment gains which of course encourages inward investment in the UK. Investing in residential property in London doesn't help Britain at all, except perhaps through stamp duty.

little bit of semantics but I think this qualifies as a new tax or, at least its an existing tax applied to a new group and in a different way. As things stand expats are not, in general, subject to any kind of CGT (while non resident) as long as they remain outside the UK for 5 full tax years. Even if they do return within the 5 years the tax does not fall due for payment until the year of return. The principal has always been non residents are not subject to CGT and the 5 year rule is there to stop people exploiting this by going non resident for short periods (as many used to do). From my reading of the news this looks like a tax obligation that will apply to any gain on the sale of a property and will fall due, for non residents, in the year of the disposal. This is completely different from the way CGT applies to non residents in the case of other types of assets. Edited November 19, 2013 by wordchild

[AyG]

There's a topic already going on this:

http://www.thaivisa.com/forum/topic/678576-uk-cgt-for-non-resident-property-sales/

[wordchild]

There's a topic already going on this:

http://www.thaivisa.com/forum/topic/678576-uk-cgt-for-non-resident-property-sales/

sorry missed that, tucked away ,as it is, in the farang pub and entertainment forum!

[MichaelJohn]

I always thought you had 3 years exemption if it was your main residence; after the 3 years you then were required to pay CGT?

[topt]

I always thought you had 3 years exemption if it was your main residence; after the 3 years you then were required to pay CGT?

If you mean if you had lived in it at some point in the last three years then yes that is what I understood - and it was classed as your main residence.

[topt]

I always thought you had 3 years exemption if it was your main residence; after the 3 years you then were required to pay CGT?

If you mean if you had lived in it at some point in the last three years then yes that is what I understood - and it was classed as your main residence.

Actually I think I am wrong - reading this - http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm

More complicated then I remembered.