Question:
I bought my flat in 1998 for £75,000. I left the UK to work abroad in November 2001 and it has been rented ever since. I have never returned to the UK and I live permanently in Switzerland, in a rented property. My UK property is valued at £330,000. I am considering selling but need to understand my tax liability first.
Arthur Weller replies:
As a non-UK resident selling a UK residential property, which was formerly your main residence, there are special rules. If you exchange contracts before 6 October 2016 then there will be no UK capital gains tax (CGT) to pay. If you sell after that date, then there will be UK CGT to pay. Based on the capital gain from 6 April 2015 until the date you sell. There are different ways of calculating the gain, and you can use the online calculator on the HMRC website, www.tax.service.gov.uk/calculate-your-capital-gains/non-resident/customer-type to calculate the tax.
