Property Sale - CGT - Non resident Tax Payer

[NowPermOutsideUK]

This thread will try to understand better the rules around property disposal for non UK tax payers.

As I understand it if you are non uk tax resident and dispose of property any gains you made prior to april 2015 are tax free and only the increase in value from 2015 -> date of sale is chargeable for CGT purposes. This applies to sale of property that you own personally and also sale of shares in a property rich company

There is a five year temporary non tax resident rule to prevent someone leaving for one year selling their assets and then returning. I ve had a good read on the HMRC websites and in particular this

HS278 Temporary non-residents and Capital Gains Tax (2020) - GOV.UK

My question is whether anyone has done this personally themselves and even thought of whilst non tax resident moving property from personal to company name or other way round to lock in the CGT tax break whilst continuing to own it?

Secondly for this to actually be effective you need to be away for five years - My accountant is checking but does this mean that I can wait five years, sell the asset and then become uk tax resident straight away?? Or does it mean that asset needs to be sold and then a clear five years abroad is required?

[eek]

Gibberish that is completely irrelevant to everyone on this site except Scooter (who has already sold and moved permanently to Germany so it's irrelevant even to him)

what does your accountant say.

[NowPermOutsideUK]

what does your accountant say.

Could well be quite a few non UK residents tax residents who might use this idea to optimise their property holdings.

Did you even understand the question and point raised? Those with big CGT bills (which I know eek you dont have because you are waiting for the famous HPC) can save bucket loads of cash - With the stamp duty holiday this could be a good time to move property from personal to company names and lock in CGT

[eek]

Could well be quite a few non UK residents tax residents who might use this idea to optimise their property holdings.

Did you even understand the question and point raised? Those with big CGT bills (which I know eek you dont have because you are waiting for the famous HPC) can save bucket loads of cash - With the stamp duty holiday this could be a good time to move property from personal to company names and lock in CGT

Yes and you need a decent accountant as no one on here is one (with appropriate experience) and you've just added whole layers of complexity to something that was fairly complex (and beyond your levels of comprehension when the initial solution was answered) in the first place.

Apart from that WTF are you talking about - I own my house (mortgage free for decades) and I don't do BTL as I was burnt by that back in 2000 and it ain't worth the hassle for the return available.

[NowPermOutsideUK]

Having spent a lot of time on this the answer is you can dispose of your asset CGT free on all the increase up to April 2015 provided you stay out of the UK for a cumulative 5 years as non resident.

Now this is massively useful for me as I have some CGT on properties held in personal names where the bulk of the increase in value occurred before April 2015

It also does mean the following which is also very relevant

Suppose someone who contracted in the UK and make a warchest but left in April 2015 with the warchest in his company and did not MVL (which is my case I did not MVL but left after April 2015)

This hypothetical person now has a £100 LTD shareholding worth the value of his warchest and if he was in the UK and gave the shares away would have to pay CGT at market value not disposal price

If however he left for five years he could sell the shares to a new SPV for market value without paying any CGT at all

I was not sure if I should start a new thread on this as I did not want to pollute threads but this seems highly overlooked and never mentioned on this forum - Is that because this is truly novel approach or because not many people can really leave UK for five years?!

[eek]

Having spent a lot of time on this the answer is you can dispose of your asset CGT free on all the increase up to April 2015 provided you stay out of the UK for a cumulative 5 years as non resident.

Now this is massively useful for me as I have some CGT on properties held in personal names where the bulk of the increase in value occurred before April 2015

It also does mean the following which is also very relevant

Suppose someone who contracted in the UK and make a warchest but left in April 2015 with the warchest in his company and did not MVL (which is my case I did not MVL but left after April 2015)

This hypothetical person now has a £100 LTD shareholding worth the value of his warchest and if he was in the UK and gave the shares away would have to pay CGT at market value not disposal price

If however he left for five years he could sell the shares to a new SPV for market value without paying any CGT at all

I was not sure if I should start a new thread on this as I did not want to pollute threads but this seems highly overlooked and never mentioned on this forum - Is that because this is truly novel approach or because not many people can really leave UK for five years?!

I think there just might be a clue within the name of this site.