Capital Gains on UK property

[jimflan]

I am hoping someone out there can clarify the position on cgt for expats who still own their UK residences, as I am getting inconsistent and sometimes contradictory info from various UK sources - including HMRC's own 'information sheet' (which is a misnomer).

I bought our house in 2000 for 185k, and around 2006 spent about 35k on an extension.

In 2011 I moved abroad for work and remain a non-resident. From mid 2012-2014 I rented it out but this has now finished, so it is empty. I've been wondering whether to rent out again or now sell up and use the money over here (Thailand), but first need clarity on the cgt position.

The position as I understood it until recently was there was no cgt liability on two grounds (i) it was my main residence, and (ii) non-residents don't pay cgt (although this may only apply after 5 full tax years abroad). In any case the UK government have now made some changes and I am struggling to get a consistent and clear understanding of them -

1. It seems that ex-pats will now be liable for cgt, but it's not clear if that also applies to their former main residence (and if it does, is it only for the two years I've rented it out, or the 4 years I've been a non-resident, or is it for the whole period) ?

2. What is the baseline for any cgt calculation ? Is it 2000, when I bought the house, or April 2015 (when they bring the new rules in).

3. Has the previous rule re anyone being non-resident for 5 full tax years means no cgt liability, no longer stand or is it still going to remain ?

Help !

[KittenKong]

The last I heard the baseline will be April 2015 so you need not worry about anything that happened before then, unless you have not already been non-resident for 5 years in which case you may have some liability under existing rules.

https://wealth.barclays.com/en_gb/internationalwealth/your-financial-life/could-the-new-uk-property-tax-affect-you.html

As for (3), that will be scrapped as far as property is concerned.

[jimflan]

Thanks, much appreciate. That clears up points 2 & 3, but I think point 1 is still unresolved, so if anyone out there can help I will be very grateful.

[alfieconn]

I'm no expert but re your point No 1, I would think that your main residence cease to be this once you became non-resident .

It will be interesting to see what happens with people who have become non-resident after April 2010 and end up being non-resident for 5 years, would they still be liable for CGT for the full period ?

The reason that you are getting inconsistent and sometimes contradictory info from various UK sources is that the official ruling doesn't come out until the end of the year so at the moment it is all guesswork.

[KittenKong]

Thanks, much appreciate. That clears up points 2 & 3, but I think point 1 is still unresolved, so if anyone out there can help I will be very grateful.

As the baseline will be April 2015 presumably it makes no difference.