CGT selling main home overseas?

gedasd

Hello everybody,
we (me and wife) are planning to sell our own flat in EU country - we lived in it for 10 years, then went to UK, and we have been UK residents for 2 years , living in rented house here. Our flat overseas was uninhabited since.
The question is - do we need to pay CGT on it as it still is like our main home, according to http://www.directgov.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4016337
except that it is not in UK. The money from selling will be remitted to UK for buying property here.
Thank you, any comments will be appreciated. Merry Xmas!

Cook_County

You would be exempt from UK CGT because you get an extra 3 years to sell up.

gedasd

Thanks for the answer . I just read that overseas income is taxable - so for selling property as well? - or do money from property does not count as income as they were spent on that property on buying?

Cook_County

Your question was not about overseas income, it was about capital gains on sale of a main residence. Unless you also have or had overseas income my answer is correct.

jimmo

Try not to get confused.
As you are now resident in the UK you are liable to UK Income Tax on income arising abroad. You are also liable to UK Capital Gains Tax on any Capital Gains arising abroad.
There are all sorts of ifs and buts regarding residence, ordinary residence and domicile but in this particular case they need not bother you.
As a UK resident you are also entitled to claim exemption from Capital Gains Tax for the period the flat was your main home and the last 3 years of ownership. This link makes the point that in order to qualify for relief the property does not have to be in the UK.
http://www.hmrc.gov.uk/manuals/cg4manual/cg64202.htm
As long as you sell the flat within 3 years of moving out you can be sure that you have no UK Capital Gains Tax to pay.

missile

Depending on which country, you may have CGT to pay there.