CGT implications – Non UK resident

by Readers Question

11:08 AM, 6th May 2015
About 4 years ago

CGT implications – Non UK resident

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CGT implications – Non UK resident

I was searching for an answer to one of my queries and came across this website, found it very useful and helpful. I hope, I can be put in right direction.

I bought a property back in 2009 for approx £100k and now its worth is around £220k. I am trying to work out the CGT amount , please note that I am from Pakistan (common wealth country). Property is BTL and I have been paying income tax.

I am not a British citizen nor do I live/work in UK – last I visited UK was in 2014 for only 15 days and before that in 2009 and 2012 for the same number of days (this, I assume makes me a non resident). CGT implications - Non UK resident

Any guidance or advice will be much appreciated on CGT calculation.

Many thanks

Ali



Comments

Mark Alexander

11:10 AM, 6th May 2015
About 4 years ago

Hi Ali

Based on what you have said I do not think you will be due to pay any CGT in the UK at this point, assuming you were to sell the property today. However, tax rules have recently changed and CGT will affect you in years to come.

For professional advice please see >>> http://www.property118.com/member/?id=452
.

Fred Bloggs

12:56 PM, 6th May 2015
About 4 years ago

CGT for non-residents came into force from 6 Apr 2015, basicly any gains made in the future from that date will be liable.
Probaly best to get some sort of valuation of the property now which will help you fill out your tax return as and when you sell the property in the future.

Jo Roebuck

13:27 PM, 6th May 2015
About 4 years ago

So am I right in understanding that the value of the property on 6th April 2015 is the starting point for CGT to be paid!!

Simon Gardner

15:56 PM, 6th May 2015
About 4 years ago

That's right, it is only the gain accruing after 5th April 2015 that is chargeable to CGT.

Shakeel Ahmad

17:02 PM, 6th May 2015
About 4 years ago

Melvin @ 12.56 is correct. Have a valuation done or have a Zoopla & or prime location valuation to hand.

Jo Roebuck: You are correct but this only applies to non residents. .

We had a revaluation in 1982 and a new base value was calculated in March 82.. The difference between now & than is that we were all treated the same i.e. resident & non resident.
l
The fundamental of taxation of fairness & equitable is not the order in today's time.

Jo Roebuck

17:13 PM, 6th May 2015
About 4 years ago

Reply to the comment left by "shakeel ahmad" at "06/05/2015 - 17:02":

So is a Zoopla valuation enough. Yes, I am a nonresident.

Shakeel Ahmad

17:32 PM, 6th May 2015
About 4 years ago

I am certain the Zoopla valuation is not enough. As the revenue has its own valuation department. It is just a starting point.

You could use a surveyor his/her valuation can be presented but that is no guarantee that his/her valuation will be accepted by the revenue.

The valuation today may show a lower valuation due to election, impending interest rates hikes. Depending who wins the election & two months down the road the prices could increase. It is for this reason that at least you have a third party price to fall upon.

Mark Alexander

18:49 PM, 6th May 2015
About 4 years ago

Reply to the comment left by "shakeel ahmad" at "06/05/2015 - 17:32":

I've heard that HMRC use the HM Land Registry indexation figures >>> http://houseprices.landregistry.gov.uk/price-calculator
.

Fred Bloggs

4:58 AM, 7th May 2015
About 4 years ago

Reply to the comment left by "shakeel ahmad" at "06/05/2015 - 17:32":

i don't think a valuation done today will be a lot different from one done on the 6th April, after all on the 6th April everyone knew that there was going to be an election.

Fred Bloggs

5:19 AM, 7th May 2015
About 4 years ago

Reply to the comment left by "shakeel ahmad" at "06/05/2015 - 17:32":

Re Zoopla,there is no hard and fast rule on where you get the information to value your property, once you have sold your property you will fill out your tax return with what you think is the value of the property, it's irrelevant how you decide on that value.
I would imagine if the valuation is with in their ball park figure then everything would be hunky dory if not then obviously they will require evidence of the value.
Incidentally HM Revenue and Customs (HMRC) can check your valuation to help you complete your tax return.

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