13 Apr 2016

A question about : Query re new CGT position for non-UK resident selling property

Hi

I am a British citizen currently living and working in Cyprus, but not paying UK income tax. I have accepted an offer (subject to contract) for a property I own in the UK, which I had been letting out from 2001 (when it was my principal private residence) until last November. I had been prompted to sell it by the forthcoming changes to Capital Gains Tax for UK citizens resident overseas who own properties in the UK.

My problem is that the property I am selling is leasehold, and my agent has informed me that as a rule, the process for the sale of a leasehold property is somewhat more protracted than that for a freehold property. Consequently there is unfortunately (for me) a very strong possibility that the transaction will not be concluded before the end of the current tax year, and that I will thus incur a sizeable CGT bill (the property having significantly appreciated in value since I purchased it in 1992).

Is anyone aware of any legitimate means by which I could at this late stage avoid the forthcoming CGT liability? I gather that it would be possible to sell the property to a trust, or transfer it to a ‘Qualifying Non-UK Pension Scheme’ (QNUPS) – but as I mentioned previously, I have already accepted an offer subject to contract, and have no intention whatsoever of reneging on the deal on moral grounds alone, let alone the possibility of being sued for breach of contract.

In addition, I have read somewhere that CGT liability will only be calculated on any capital gains from 6 April 2015 until the date of disposal of the property; could anyone confirm whether or not this is indeed correct?

Any advice or clarification would be most gratefully appreciated.

Many thanks in anticipation.

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Category: 
Cutting Tax
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