CGT implications – Non UK resident

by Readers Question

11:08 AM, 6th May 2015
About 6 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


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Comments

Ali Shah

5:42 AM, 10th May 2015
About 6 years ago

Reply to the comment left by "LS " at "09/05/2015 - 22:54":

Thanks Neil, Shakeel & LS - I guess its good idea to get a survey done, will look in to it

secondly, I am thinking of reinvesting the entire funds (capital + profits) back in BTL - I am assuming that will avoid CGT issues ...

Neil Robb

10:30 AM, 10th May 2015
About 6 years ago

Ali Shah

by the sounds you will have very little CGT to pay by the sounds of it. There is other funds that pay good rates of return. But you would need a good financial adviser for that. The man I use has pretty save funds with 8% plus in returns.

Lucy McKenna

10:39 AM, 10th May 2015
About 6 years ago

I think that there will be CGT to pay as it is only exempt on your private home even if the money is re invested in another BTL but others here will know the exact answer to this question. http://www.theguardian.com/money/2007/oct/25/capitalgainstax.tax

Shakeel Ahmad

11:36 AM, 10th May 2015
About 6 years ago

Hi Ali,
The CGT will only be due on the gain after the 6th of April 15, Not knowing when you plan to sell, In addition you will have the first £11000 exempt in the event that your gain is taxable.

I don't see any financial benefit in you selling and buying another one you will be few thousand pounds down e.g selling agents fee, legal fee and VAT on both. Buying a new one. Stamp duty, local searches, legal fee , VAT on legal fee and perhaps new furniture& moving cost.

I feel you have now have been advised correctly & wisely by all on the forum and besides your own reservation .not much further can be added..

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