Expat House Sale

got2bfunky

Hi all.

We have a house which we purchased in 2006 for £163,495, we are at present listing the house for sale at £165,000 (got to love the B'ham housing market).

We lived in the house until October 2010 and have been in the UAE since December 2010.

The mortgage has a balance of £124,500.

My question is will we have to pay tax on this presuming we sell for circa £160k and if so what kind of % are we looking at?

Many thanks in advance.

G_M

So a Capital Gain of £1,505.

This is well within your annual allowance (£11,100), so it depends whether you have made any other Capital Gains (eg investmet sales) in the relevant year which would take you over the allowance.

got2bfunky

Thanks for confirming G_M, i thought this was the case but a colleague had just cast some doubt as to whether this was correct.

booksurr

you will have to report the sale even if there is no tax to pay, including if you sell for 160k so make a loss
https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-residential-property

as GM says you still get the personal allowance even though non resident

https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-calculating-taxable-gain-or-loss