UK CGT - But Now Living Overseas - Help Please !!

pete80

fengirl wrote: »

In answer to your questions, there is only one taper relief, but you and your wife each have an annual exemption.
There is no releif for letting the property - the fact that it was let gives rise to a CGT charge. However, if you ever lived in the property, there are several reliefs - you need to give us details for us to advise.
Capital improvements to the property are allowable against CGT, as are buying and selling costs, eg agents fees and legal fees.
Any gain will be taxed at your respective highest rates (22% or 40%).

I have recently gone through the selling of BTL property and as I had lived in the house previously as my main residence, I was able to claim Letting Relief and Principle Private Residence Relief details of which were in the link to the HMRC Helpsheets.

emitherme, if you go to taxatioweb.co.uk and register for free and post the dates you bought, sold, resided there yourself and the purchase & sale prices plus buying abd selling costs/legal fees, there is a very helpful chap named PeterD who has a full capital gains tax calculator and he will provide you with a figure of what if any tax is to pay.

If you lived in the property and can in some way provide suffficient evidence that it was your "main residence" for that period then you are entitled to a PPR relief worked out on the number of months you occupied out of the total months you owned. Lettings relief is aslo available up to either the same amount but with a maximum of £40,000. Be sure to stipulate if your wife/partner's name was on the title deeds when you post on taxationweb.co.uk under the Capital Gains Tax section.

You may not have a penny to pay if all goes well.

Cook_County

Interestingly you live in Australia. Is the gain taxable in Australia? Did you report it there?

Will you ever return to the UK - say on illness or death of family? If not I would agree not to care - otherwise pay the tax you owe. That is what the law requires.

pete80

Cook_County wrote: »

Interestingly you live in Australia. Is the gain taxable in Australia? Did you report it there?

Will you ever return to the UK - say on illness or death of family? If not I would agree not to care - otherwise pay the tax you owe. That is what the law requires.

CC

The OP sold his property a year before he left the UK, so his liability for possible CGT is only with HMRC. It is a shame that he exchanged contracts before leaving, if one moves out during 05/06 tax year and exchanges just after 6th April then no liability if staying non-resident for at least 5 years.

emitherme

Pete thanks for your responses - went on taxationweb.....and got a reply - such as HMRC could issue a detention warrant at UK Passport control should you enter the UK - Now I am worried, as I know my wife looking to visit relatives.............Sureley this cant be correct if we are only talking about potetially owing the revenue - (IE Case not even begun in detail ??). Even if HMRC orive that a debt is owed, and you come to a payment agreement with them....would they still issue such warrant if at all...


...feel like international criminal here ??

pete80

emitherme wrote: »

Pete thanks for your responses - went on taxationweb.....and got a reply - such as HMRC could issue a detention warrant at UK Passport control should you enter the UK - Now I am worried, as I know my wife looking to visit relatives.............Sureley this cant be correct if we are only talking about potetially owing the revenue - (IE Case not even begun in detail ??). Even if HMRC orive that a debt is owed, and you come to a payment agreement with them....would they still issue such warrant if at all...


...feel like international criminal here ??

Not exactly "Costa del Crime" material is it?

Don't worry too much, if you get things moving with a tax adviser then they will be able to make a decision on what to do regarding your lost paperwork. They should be able to guide you on whether to claim the renovation expenses, maybe even without those your CGT bill could be reduced to Zero just by using the PPR and LR, seeing you resided there for a while after buying the flat.

The detention warrant probably wouldn't be issued for a small amount like this but if you chose to ignore it the eventual tax bill could be clawed back from your pension later.

When you have spoken to the tax adviser, let us know how you get on please.