Paying UK CGT now or later as non-resident?

Sumarokov

Hello. I moved to Germany last year, so from now on I will be a tax resident in Germany. I do not know how long I will be staying in Germany, as a lot depends on external circumstances, but I wanted to ask this question.

I have gold investments which have risen in value and the profit, if I sell out, would be taxable under UK law (but not German law, although that is besides the point - my question is more about accounting and tax returns).

As I basically understand the law, I will still be liable for CGT in the UK unless I spend the next five years outside the UK. But say I sell out some investments next year? Do I still go ahead and inform HMRC (and claim the tax back if I do end up staying outside the UK past 2026)? Or do I wait and see if I spend the next five years outside the UK and only file a tax return if I do return?

 

 

Jeremy535897

"In general, you are only fully in scope of UK CGT if you are resident in the UK. Note that if you are resident in the UK, you may be liable to CGT on disposals of assets located anywhere in the world, not just your assets located in the UK.

However, if you dispose of an asset while temporarily non-resident in the UK, you may be liable to CGT when you return. This may apply to you if decide to live abroad for a few years or if you are posted overseas."

From https://www.litrg.org.uk/tax-guides/savers-property-owners-and-other-tax-issues/capital-gains-tax/capital-gains-tax

The rules are complex, but in short, section 1M TCGA 1992 charges the gain in the tax year you reacquire your UK residence, if you are a "temporary non-resident", and it overrides the double tax agreement provisions.

Dead_keen

Sumarokov said:

Or do I wait and see if I spend the next five years outside the UK and only file a tax return if I do return?

You wait and see.