can I avoid Capital Gains

celialamb

Have rented my flat out for the past 25 years. Rented and travelled around. No pension, no cash, need to sell, how can I minimize my capital gains position, could I return and live in the flat, would that help, if so how long would I have to live there to neutralize my tax. Oh dear if only ....

ceeforcat

Some details needed:

Did you ever live in flat previously - dates required.

Purchase cost and date.

Purchase cost and dates of any MAJOR improvements if any.

Current value.

celialamb

1979-1985 lived in the flat
bought for £12,000 in 1978. Spent £8,000 renovating in 1979. Now worth £397,000.

hotpot1000

I heard on moneybox radio 4 a while ago that there is no actual stipulation on how long you would have to live at your property before selling so that you would not incur capital gains, therefore who's to say?

I would add that a house I know, had extensive works in order to sell, where the family had moved out.
once it was inhabitable again, the whole family would come back & stay every weekend(for a couple of months) as the work was gradually finished and live at their new house during the week, the rumour was - because of CGT.

diable

celialamb wrote: »

Have rented my flat out for the past 25 years. Rented and travelled around. No pension, no cash, need to sell, how can I minimize my capital gains position, could I return and live in the flat, would that help, if so how long would I have to live there to neutralize my tax. Oh dear if only ....

Was it cash in hand or legal?

Plus if you where non dom then other rules may apply, you may need to speak to a professional for the right advice.

sleepless_saver

If you were employed overseas for the full period you wouldn't have to pay. Were you?

Otherwise you are going to be stuck with what could be a fair bit of CGT to pay. CGT rules are complicated and the amounts involved are potentially large, so it could be well worth forking out for a tax adviser to see how to minimise it in your circumstances.

HMRC leaflet on private residences and CGT has some useful info and examples.

noodle

celialamb wrote: »

how can I minimize my capital gains position,

Have you thought about getting elected as an MP?

celialamb

Oh MoneySaving Convert, I would so love to be an MEP, the pension, the expenses and the free tax advice!!!

taxing

Emigrate and sell after you have left the UK.

Regards.

harryhound

celialamb wrote: »

Oh MoneySaving Convert, I would so love to be an MEP, the pension, the expenses and the free tax advice!!!

Or better be one of these - I've known a few, and it is not just UN employees - interesting snouts in the trough opportunity.

Taxation: International Civil Servant Status

Harry Cohen: To ask the Chancellor of the Exchequer how many people in the UK have international civil servant status for tax purposes; what such status means in terms of allowances and exemptions; and if he will make a statement. [158423]
Jane Kennedy: Under UK tax law there is no such person as an “international civil servant”. However, officials of the United Nations are sometimes referred to as international civil servants. There is no requirement for visiting officials to notify HM Revenue and Customs of their presence in the UK. Those who are present in the UK for a sufficient length of time to become resident in the UK will be dealt with locally. Information is not collated centrally.
The UK tax position of employees of the United Nations is set out in the United Nations and International Court of Justice (Immunities and Privileges) Order 1974. This provides immunities and privileges that are normal for international organisations. It includes among other things that officials of the UN shall be exempt from income tax
UN Officials are however subject to a form of internal tax on remuneration received by them from the UN, operated by the UN, which is referred to as the Staff Assessment..
17 Oct 2007 : Column 1143W

http://www.amfie.org/spip.php?rubrique128&lang=en

seven-day-weekend

If you sell whilst non-British resident and remain abroad for five tax years after this, you will not have to pay the tax.