CGT on UK property for non resident - USERNAME: bc1050 - 19/07/2018

Tax Question:

Hi,

I am a UK citizen living in UK for past 3 years after 22 years overseas and about to move to live in Spain at the end of this year. I don't foresee moving back to the UK

I have a property that I purchased while living overseas 12 years ago that I am selling this year that will leave me with a significant capital gain. Can you suggest options for me to avoid paying capital gains tax in the UK if I sell it before the end of the year?

What can I do to avoid UK cap gain tax before I become fully resident in Spain?

I am also geographically mobile and could perhaps consider a move to somewhere for a temporary period to avoid the tax before I take up fiscal residence in Spain if this was the only option open to me.

Please let me know your suggestions to address this issue.

Thanks

Answer:

It would make sense to avoid selling the property after becoming resident in Spain. Therefore the simplest option would be to leave the UK, establish non residence in the UK and sell the property prior to becoming resident in Spain.

There would still be some UK CGT, as new provisions apply CGT to non residents on the gain from 2015. Therefore there would be a gain on the UK property but you can apportion this to the gain arising from April 2015.