Do I need to pay Capital Gains Tax

Mcagun

1st post
I need some advise please.
I bought a piece of land in the Caribbean, 12 years ago and have since built a home on it, although it did take 10 years to complete.

I do not own any other property anywhere else, in the UK or world wide.
My intention was to move there for about 6 months a year
in 2 years time, this now may never happen.

My question is this
If I sold my property in the Caribbean, would the money I brought back into the UK, be liable to any kind of tax

I have no idea what it has actually cost me to build, I never kept records.
I would imagine I could sell it for around $200,000US

pyueck

Assuming you are a UK resident, yes liable to CGT as it hasn't been your principle residence.

If you didn't keep records you will need to estimate and record this on your tax return.

Mcagun

Thank you very much for your prompt reply

How long would I need to reside there for it to be classed as my main residence

Pixie5740

It's a bit more complicated than that. Firstly, whether or not you might have to pay capital gains tax depends on your status i.e. whether you're a UK resident and if you're domiciled.

You also need to investigate any tax that might be due in whichever Caribbean country this property is based in.

pyueck

Mcagun wrote: »

Thank you very much for your prompt reply

How long would I need to reside there for it to be classed as my main residence

See https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323679/hs283.pdf

You will need to apportion the gain between the years that the place was and was not your main residence.

You cannot live in there a period of time now and make the place your main residence for the entire period your have owned it.

Get advice, I have no idea about any local taxes and whether you can argue that you can extend the usual 12 months allowed for renovations before you move in.

Mcagun

I just knew it wouldn't be a simple answer.

Just had to educate myself on residence and domicile

No tax in the country where property is located.

I will be both resident and domicile.

I had heard that if I bought property in the UK that it wouldn't incur tax liability, is this correct

ognum

Mcagun wrote: »

I just knew it wouldn't be a simple answer.

Just had to educate myself on residence and domicile

No tax in the country where property is located.

I will be both resident and domicile.

I had heard that if I bought property in the UK that it wouldn't incur tax liability, is this correct

Wow is this really true, I own a Caribbean property and the local government has an enormous withholding tax when sold as well as the 7.5% EA fees and the need to demonstrate all property taxes are paid to date.

Well done on choosing an island with no tax, which island is it?

Mcagun

Caye Caulker, Belize

Mcagun

I do pay yearly taxes on my property I think it was $30US last year!!