Taking personal allowance on rental income - Overseas
Taking personal allowance on rental income - Overseas
Author
Discussion

marcusjames

Original Poster:

783 posts

277 months

Tuesday 30th August 2011
quotequote all
I am living overseas and rent out property in UK. Currently claiming my personal allowance against rental income. If I continue to do this, and then return to UK, do I leave myself open to CGT?

Would appear that I'm having my cake and eating it.

Thanks

Eric Mc

124,064 posts

281 months

Tuesday 30th August 2011
quotequote all
The two things are not really related.

You are renting out a property in the UK whilst you are working abroad.

Was this house your main residence when you lived in the UK? If you moved abroad without living in this house was it ever intended to be your main residence?


Your question is very similar to one that is currently being discussed on PH, in nthis forum.

Any house that has been rented out is potentially liable to CGT if and when it is disposed of. However, if the house has been your main residence at any time during your period of ownership of the property, you could find that the capital gain has been at the very least reduced and possibly wiped out completely.