Capital gains on UK property


(Chris Balchin) #1

I have a house in the UK which I will eventually sell. I was wondering how it works with regards to CGT both in France and the UK. As I am tax resident in France and I have had the house for more than 25 years I understand that there will only be social charges to pay in France (under the taper relief system). Will I still be liable for CGT in the UK as well or does the French system trump the UK one?

Thanks in advance for any advice.


(Terry Williams) #2

There are some links which should help on Useful Links/Finance, Chris. And I seem to recall a discussion not so long ago on the subject.


(Mandy Davies) #3

This link to the HMRC website explains how capital gains are calculated for non-residents. The rules changed in April 2015. I would draw your attention to the rules about Principal Private Residence. If you have ever lived in the property prior to April 2015 then if you sell befor 5 October 2016 you should pay no UK tax at all. That's not so far away so I would suggest you urgently get some professional advice. Let me know if you have any questions and I will be happy to answer. This used to be my job in a past life.

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


(Chris Balchin) #4

Thank you Mandy, that was very helpful. I haven't lived in the property for more than 15 years. I don't intend to sell yet unless the tenant leaves and I intend keeping it for the next few years (at least until I retire in 6 years time).


(Mandy Davies) #5

I'm glad that's helpful. Provided you have lived in the property as your principal private residence at some time then the last 18 months of ownership will be tax free. In addition you will have your annual exempt allowance (currently £11,100 per person) and, as you have tennants, something called letting relief. Another link attached.

https://www.gov.uk/tax-sell-home/let-out-part-of-home


(Chris Balchin) #6

You're a star Mandy. Thank you for all this.