CGT on property for UK citizen residing overseas

CarterUSM

Hello

I have an enquiry regarding my liability to capital gains tax for a residential property I am currently letting out.

At the moment, both my wife and I are domiciled in Cyprus, although we are UK citizens, and we both own residential property in the UK. (My wife is subject to UK income tax on her earnings, whereas I am subject to Cypriot income tax). I am thinking of selling my property within the next five years or so.

I understand that the capital gains situation differs as between UK citizens domiciled in the UK, and UK citizens domiciled abroad. My specific query is this; were I to sell my property whilst I was still resident in Cyprus, how would my liability to CGT differ from that if I were to sell it after I had returned to the UK?

In addition, are there any other considerations I need to bear in mind if I am to reduce my potential CGT liability?

Also, if anyone could point me in the right direction regarding Inland Revenue publications, useful resources on the Web, etc. etc. I would be very grateful.

Very many thanks in anticipation of your assistance.

thetaxdoctor

Any "property" vested in the UK for investment purposes will be subject to UK taxation including CGT.

There are ways to reduce this liability but you will not be exempt from it entirely.

antrobus

Try :-
Frequently Asked Questions (FAQs) - Capital Gains
http://www.hmrc.gov.uk/cnr/faqs_capgains.htm

For example:-

Q6. How long do I need to be abroad to avoid being liable to capital gains tax? A. This depends on when you left the UK:
(i) If you left the UK on or before 16 March 1998 see the answer to Q3.
(ii) If you left the UK on or after 17 March 1998 you would need to be not resident and not ordinarily resident in the UK for at least 5 full tax years between the year you left the UK and the year of your return.