Capital Gains

kxh17693

Hi
My uncle, who lives abroad and is not a British citizen, owns a property in the UK. I have a power attorney from him and he has asked me to sell the property for him. The property has been let since he bought it about 3 years ago and he will be making about £40,000 profit on it. Does he have to pay CG tax? If so, are there any concessions for him or can he do anything to reduce what he pays? Cheers

itsakidsworld

Hi,

This is what I believe to be the answer you require;-

If your uncle sold this property and he has no other property whatsoever in his name in this Country, he can leave the Country and pay no CGT. He has to be out of the Country for at least five years, although he can return for a certain number of days a year, although I cannot remember exactly how many. This used to be only one year.

If he has any other property in his name, investment or private residence, he will be liable for CGT.

Go to your local tax office and ask them, they are very helpful and will explain all this to you, maybe even have a leaflet on the subject.

Ian_W

I'd be fairly sure he has a tax liability - he's gained the money in the UK and will be subject to our tax laws - though whether and how it could be collected from him is altogether another matter. The concern I would have is for your position as his representative with power of attorney and whether HMRC could hold you responsible if it wasn't paid.

I would suggest you repost this query on the "Cutting Tax" forum a little further down the list. There are some accountants, at least one with international experience who post there.

MortgageMamma

Personally, with an issue such as this I would not take any advice from these forums and take the advice of a paid professional who has a responsiblity to you as his client. Phone around some firms in your locality to find out the implications. it could well be that the country your uncle is now resident in has a double taxation treaty with the UK and this could have an impact on the situation.