CGT for non-residents

AndyS_UK

Hi all,

I am a British citizen living abroad. I have UK shares which I inherited before leaving the UK and I am trying to understand the capital gains tax implications, in particular regarding my annual exemption.

I will be non-resident in the UK for a few years, but it is entirely possible that it will be for less than 5 years. As I understand it, if I return before 5 years I will have to pay CGT on gains made on UK shares while abroad.

My question is this: am I entitled to the annual exemptions each year? Or is it only for the year when I return? Or are there no exemptions at all?

Unfortunately I couldn't find the answer on the HMRC website.

Thanks!

uknick

CGT annual exemption is for a particular year only. It can't be carried forward.

Does this answer your question regarding residency and CGT?

http://www.hmrc.gov.uk/international/tax-incomegains.htm

jimmo

If you fall foul of the 5 year rule all of your Capital Gains will be regarded as having arisen in the tax year in which you become resident here again. As you will then be resident you will qualify for the annual tax free amount for that year but not for the years in which you were not resident.
http://www.hmrc.gov.uk/manuals/cgmanual/CG26110.htm
http://www.hmrc.gov.uk/manuals/cgmanual/CG26500.htm

AndyS_UK

Yes, thanks to both of you! That's great - to know, but not to have to pay!