Capital Gains Tax Overseas

daniel_3-2

Hi,



The plan was to move back and live at the propertyfor a year or so and then sell it but now it seems she is liable for capital gains tax. Is this correct? Does this mean one cannot simply leave the uk, work overseas and then return without capital gains tax being an issue? The property is not an investment property. We have been advised to stay out of the uk for another year so that a five year absence from the UK is achieved and therefore no capital gains tax to pay however this is not really practical at the moment.

Any advice gratefully received!

Jonbvn

Check the HMRC website on this issue:

http://www.hmrc.gov.uk/cgt/intro/when-to-pay.htm

Overseas assets
Overseas assets are liable to Capital Gains Tax if you're ‘resident’ - or ‘ordinarily resident’ - in the UK. For example, if you choose to live or work in the UK and do so on a regular basis, you're probably resident here and are liable on gains arising both in and outside the UK.
Typical overseas assets include:
a holiday home abroad
shares in a foreign company
land overseas bought for development
However, if you're 'resident' in the UK but not 'domiciled' here - perhaps because you or your father were born abroad, you've lived abroad or plan to live permanently abroad - you may be able to claim what’s known as the 'remittance basis'. This means you're liable on all gains arising in the UK but are only liable on foreign gains when you bring them into (‘remit’ them to) the UK.
Residency, domicile and tax on foreign gains are complicated subjects - a lot depends on the facts of each case. See more in the guidance below or contact your Tax Office.

http://www.hmrc.gov.uk/cnr/hmrc6.pdf

Given the sums involved, professional tax advice should be worth it's weight in gold.

LYT_2

Does anyone known whether I will have to pay CGT in the UK if I sell a gold bar in France? I would be making a profit above the £10,600 threashold and I am (although French nationality), a UK resident.

I am asking as in France, there is no CGT to pay on gold once the item has been owned for over 12 years....so it seems crazy that over here there would be a 28% tax to pay!

Thanks
LYT