When do I become non-resident / Capital Gains Tax question

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    When do I become non-resident / Capital Gains Tax question

    Hi- I really can't find out much about my situation so wondering if anyone else knows.

    I just sold my main residence in the UK and will move abroad and won't be back to the UK in the medium term (over 5years).

    I have a buy to let in the UK that I want to also sell.

    Can I sell this and pay non-resident CGT in the same tax year as the disposal of my main residence? Is there a complication if I do this in the same tax year? Do I need to wait?

    Thanks in advance!

    #2
    I think your status remains as resident for UK Taxes until after completing one year absence from date of departure from UK.

    Also you have to be registered with hmrc as a non-resident landlord before you can claim to be non-resident.

    How long have you owned the BTL flat ?

    Comment


      #3
      it's a bit more complex than that. Even if you move abroad for five years or longer, your non-res status will depend on whether you have any ties to the UK and what kind of ties those are (dependent children etc.).

      If it happens that you do qualify, you won't do so until you have been out non-resident for a complete tax year. Thus, if you leave on, say, April the 20th (as I did last time I worked overseas), you won't qualify until April the 5th of the year after the next one. Leave on April 20th, 2022 and (under current rules) become non-res in April 2024. If you're able to plan it, leave before April to qualify as quickly as possible.

      Comment


        #4
        Originally posted by Gordon999 View Post

        How long have you owned the BTL flat ?
        I've owned the flat since May 2013.

        Comment


          #5
          ok, so if I just sold my main residence in May 2021 and leave the UK. I have to wait until April 2023 to become deemed non-resident which is then when I can sell the property under non resident CGT terms?

          Comment


            #6
            You can sell now using the purchase price in May 2013 ( paying capital gains tax as resident ) or

            wait till April 2023 to sell ( paying capital gains tax as non-resident using the "April 2015 valuation" instead of using May 2013 purchase price ).

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