From: "Keith" 
Newsgroups: uk.finance
Subject: Re: CGT on UK house sale
Date: 28 Feb 2007 07:15:36 -0800
   posting-account=F2tX1A0AAACGMvlF8vLVWoq01OxO0ogR

On Feb 28, 11:01 pm, "Keith"  wrote:
> On Feb 28, 7:24 pm, Ronald Raygun 
> wrote:
>
>
>
> > Keith wrote:
> > > Really appreciate any advice on the following GCT liability on selling
> > > my house in the UK.
>
> > > Nov 2000 - Bought flat in UK - 140,000 pounds
> > > Dec 2003 - Left UK to work in Singapore and rented out flat
> > > Dec 2006 - Stopped renting
> > > Feb 2007 - Looking to sell for 245,000 pounds (still in Singapore)
>
> > > I'm hoping I'm not liable to CGT, but if I am, I'm hoping it's not on
> > > the whole 105,000 pounds gain.
>
> > There is apparently some exemption which applies if you've been away
> > long enough, but I think it would need to be 5 years, so doesn't
> > apply to you.
>
> > Your raw gain would be 105k minus the incidental expenses of
> > acquisition (survey, legal, stamp duty) and disposal (marketing,
> > legal).  Call it 100k.
>
> > If this was your home from when you bought it until you left,
> > you would be entitled to PRR on the first 3+ years and the last
> > 3 years of ownership, which adds up to almost the whole period
> > of ownership, and the short gap in the middle would be covered by
> > LR.  So -- nothing to pay!
>
> > If it was never your home, all you'd get is 6 years' taper relief,
> > i.e. 20%.  Then deduct the annual exempt amount of 9k and you'd
> > be assessed on a gain of 71k.
>
> Thanks.  I actually called the Inland Revenue and they said, because I
> was non-resident, I am except from CGT.  2 main criteria were:
>
> - Liability will arise if the assets were used or held for the
> purposes of a trade, profession or vocation carried on in the UK
> through a branch or agency or by the branch or agency.
>
> - Gains arising during a period of temporary non-residence may be
> chargeable (see paragraphs 8.4 - 8.6).
>
> As i am non-resident (not temporary non-resident and don't use the
> property for point 1, I'm excluded.
>
> Thanks again - really appreciate your inputs.

Sorry - just pulled this out from IR20 :

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 think this means, i can't be resident in th UK for 4 out of the 7
years before I left the UK to be exempt from CGT.  Strange rule, as of
course i was not, i lived in the UK.  So guess this means I am liable,
now I'm confused!