[willsken]

I have been informed that if we sell our properties and move to NZ now and don't come back to live in the UK for 5 years we won't have to pay capital gains tax. Anyone know if this is true? :confused:

[willowshouse]

Hi Nicola,

I am no tax expert but have looked into this as we have 2 rental properties to consider. My official take on it is - you would have to pay it. It's a very complicated subject which is why accountants charge so much to sort it out but here is the link

http://www.hmrc.gov.uk/pdfs/ir20.htm

and this is the relevant part:
____________________________________
Gains by those who leave, or come to, the UK part way through a tax year

8.3 If you leave the UK during a tax year and cease to be resident or ordinarily resident in the UK, you may, by concession (extra-statutory concession D2), not be liable to capital gains tax on gains arising to you from disposals made after the date of your departure. However, if you leave the UK on or after 17 March 1998, you can qualify for this concession only if you were neither resident nor ordinarily resident in the UK for the whole of at least four of the seven tax years immediately preceding the tax year in which you leave the UK.
_____________________________________

I would be VERY interested to hear from anyone who has managed to avoid paying it - there must be a way to get round it..please!

Dawn

[KD17]

We're certainly no tax experts either, and don't want to add confusion to an already complicated situation, but we have been looking at the Inland Revenue document on

www.ird.govt.nz

where is gives a list of the exempt types of foreign income, one of them being: -

Gains on sale of property drived offshore

would this not exempt you from any CGT?



Keith & Debby

[willsken]

As we have resided in the UK for 1 day + in this tax year we would be liable for CGT. So basically we can't sell until next April or we have to pay tax. So we are going to rent it out until then.

[willowshouse]

Hi Nicola,

Was that the outcome of your accountant's meeting? So, if you are not resident in the tax year and you don't return for 5 years you don't have to pay? :clap

Dawn

[willsken]

Yup, as long as you are not a resident in the tax year you sell the property and you don't come back and live in the UK for 5 years you pay nothing! :nice1