CGT Non uk resident - sell of uk rented property

awwallace22

Hi I require some advice!

I have a client who is a non uk resident and lives in France. He has a rented property in the UK which he wishes to sell (never been his private residence). I believe he will have to pay UK CGT on any profits he makes on the uk sale as he became a non resident after 1998. The question is will he be subject to French taxation too?

Any input gratefully received.

Thanks

Nilesh Mandvia

Uk cgt?

AFAIK, if he is non uk residence, then there he is not laible to uk cgt. He may be subject to french tax.

deanshepherd

^Agreed.

Nilesh Mandvia

Just to clarify my previous post, he has to be non uk residence for 5 years in order to avoid uk cgt.

awwallace22

Unfortunately my client has been non uk res for only 3 years

Nilesh Mandvia

awwallace22 wrote: »

Unfortunately my client has been non uk res for only 3 years

If he is non uk residence at the time of disposal of an asset, still he is not chargeable to cgt. He has to report the gain on uk tax return, if he return before 5 complete tax year as a non residence.

awwallace22

many thanks for the reply. Its helped greatly. So just to recap, my client who has been non uk res for 3 years decides to sell the rented property for a profit of £70000 and remains a non resident for the next 2 years there is no cgt. This does not have to go on the uk tax return in the year he sells. But if he were to returns to before 5 years he would have to declare in the uk tax return and pay cgt.