Non resident CGT and gifting query?

by Readers Question

11 months ago

Non resident CGT and gifting query?

Make Text Bigger
Non resident CGT and gifting query?

It’s said to be possible only post April 2015 gains are payable on the sale of residential property (subject to the non resident rules/temporary non resident rule for 6 years not the 5 stated ). globe

However, my query is centered on would it be possible on to gift/transfer said residential property to someone and again only post April 2015 gains be due?

Obviously it would have to be a CGT free country, such as the Isle Of Man. Or would this not be possible due to some provisions/ anything I am missing?

If so I understand, subject to proof having lived in a property at –some- point also the last 18 months of ownership would also be CGT free? And Lettings relief of some amount would be available? Or are those two just for residents oppose to non residents ?

Many thanks

Tobias

Comments

Neil Patterson

11 months ago

Hi Tobias,

This one has got a bit complicated for me. Are you also considering gifting to a non-resident or someone UK based?

Please see our main tax page and Tutorials >> https://www.property118.com/tax/

Also specifically the CGT, PPR and Lettings relief article >> https://www.property118.com/capital-gains-tax-relief-on-a-property-you-have-lived-in/

Tobias Nightingale

11 months ago

Reply to the comment left by "Neil Patterson" at "11/01/2017 - 10:08":

Thanks for the reply Neil. To answer your question the person in question is currently resident but would be willing to become 'non resident' .Although I don't see how it would make a difference.

Mark Alexander

11 months ago

It is not clear to me whether the person making the gift is UK resident or not.

If he/she is UK resident then the residency of the beneficiary of the gift has no effect on the CGT payable in the UK.

However, if it's the other way around and the person gifting the property is non-resident in the UK for tax purposes then capital gains tax will indeed only become due of capital appreciation since April 2015 regardless of where the beneficiary is tax resident.
.

Tobias Nightingale

11 months ago

Thank you Mark. Is Jersey/Guernsey/Isle Of man fine as far as the post 2015 gains go? I read the DTA's were changed last year so I thought perhaps only x places it is possible Another question I have is: Regarding the eviction process would the landlord have to turn up to the court hearings or would it be the managing agent?

Mark Alexander

11 months ago

Reply to the comment left by "Tobias Nightingale" at "15/01/2017 - 11:25":

Hi Tobias

I am not up to speed on the CGT rules for the Channel Islands and I have not been instructed by a paying client to investigate this recently.

With regards to eviction hearings, it isn't necessary for a landlord to be represented in Court but it is advisable. Thankfully, due to quality referencing and tenant selection this is something I haven't had to deal with for several years. My advice to anybody with a problem of this nature is to consult an eviction specialist - see https://www.property118.com/evicting-tenants/
.

Tobias Nightingale

11 months ago

Thanks Mark. As none of the channel islands/Iom have Cgt It probably would still be ok ie just post 2015 gains.Unlike Portugal where it is dependant on NHR scheme for example. The reason I asked would the LL have to turn up to the court hearing is 'should' eviction be necessary given there is limit to how many days you can be in uk for 6 years (not the 5 normally refered to ) that it might put the LL in catch 22.

Mark Alexander

11 months ago

Reply to the comment left by "Tobias Nightingale" at "18/01/2017 - 13:48":

Yes I see.

I don't see the evictions issue as a problem at all.

With regards to the amount of time a tax exile can spend in the UK please see http://www.expertsforexpats.com/expat-tax/statutory-residence-test/
.

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Five Warnings for 2018 - #1 The Minimum Energy Efficiency Standards