Capital Gains on investment property - Living overseas

[marcusjames]

I am a UK citizen who has lived in Switzerland for over 5 years (returning to UK for odd days - around 50 per tax year). I have an investment property in UK that I developed this year.

If I sell it this year, will I be liable for CGT? Also, if I do sell but then return to UK early next year, will I then be liable? Would staying out of the UK until April 2014 make any difference?

Many thanks

[Eric Mc]

One of the most difficult areas in taxation - residence and non-residence.

Seek professional advice.

[z4chris99]

depends where you (the developer) was based...

but most likely you will have to pay CGT based on gain from
value when first spade dug

z4chris99 - developer

[sumo69]

If this is "development" then surely its assessed as a trade which will be fully taxable as within the UK?

If its a property that has been held and rented and now sold then that would be under the CGT unbrella - in which case the 5 year window for exemption may be an issue.

You really should discuss with a UK accountant - do you have one?

David

[z4chris99]

sumo69 said:

If this is "development" then surely its assessed as a trade which will be fully taxable as within the UK?

If its a property that has been held and rented and now sold then that would be under the CGT unbrella - in which case the 5 year window for exemption may be an issue.

You really should discuss with a UK accountant - do you have one?

David

Not entirely.. what if the site is owned by an offshore entity? and the developer is offshore?

You can take all the steps to mitagate yourself against the tax but it will only really be look at upon exit.

Depends how small the site is if HMRC give you a good going over.