Leave the UK and Reduce Capital Gains Tax (CGT)

[@spat27]

With regard to investments like crypto for example if you moved to Dubai and cashed in your crypto there, there would be no cgt payable, is that correct as long as you have a residency permit in Dubai and stay out of the UK for over 5 years?

[@UK-Property-Tax-Accountants]

That’s indeed correct 👍

[@spat27]

@@UK-Property-Tax-Accountants Thank you Simon. If I live in Dubai for six complete tax years do I still have to pay IHT if I have no UK assets and I only have worldwide assets?

[@UK-Property-Tax-Accountants]

Provided you severe all UK ties then no UK IHT will be charged

[@spat27]

@@UK-Property-Tax-Accountants When you say sever all UK ties, what do you mean? I’d have no property in the UK, I may keep a UK bank account and I’d have personal pensions in the UK that’s all. Is that adequate to be classed as severed?

[@UK-Property-Tax-Accountants]

It’s worth you getting clarification with further reading; www.gov.uk/government/publications/rdr3-statutory-residence-test-srt/guidance-note-for-statutory-residence-test-srt-rdr3

[@allykhan8594]

I thought that loophole was closed for residential property?

[@UK-Property-Tax-Accountants]

Reduced but not avoided by HMRC as you use April 2015 numbers instead of original purchase price

[@johnporcella2375]

One of the slides refers to Capital Gaius Tax! Was that an emperor in the Roman Empire? 😂

[@UK-Property-Tax-Accountants]

Ooops I hope people can see beyond the typo hey 😂

[@cct9810]

My question is, what if I left the country 20+ years ago & I inherit a couple of houses? One where my mother lived & the other a rental house?

[@UK-Property-Tax-Accountants]

That is a very complex case as you can appreciate. Please do get in touch with us to book a taxi consultation to clarify your situation

[@victablet3480]

If you have a sole property, but its btl, do you still pay cgt?

[@UK-Property-Tax-Accountants]

Who pay capital gains tax on any property that you own, which is not your home

[@gnbg69]

What country allows to move in and leave out? I mean without extravagant or unexpected cost... Thank you

[@UK-Property-Tax-Accountants]

That is a great question at the answers are so fast that it would be impossible to write on a KZbin forum. Sorry about that 😢

[@czeital]

Very interesting - can I check the info at around 3:52 though please - I had thought and HMRC seemed to confirm that the 18% rate is only available if the all of the gain plus any other taxable income is in the lower rate band where as if I understand this correctly ( and possibly I don't) the video seems to say that the 18% would be paid on the whole £200k gain in this example assuming the seller was a lower rate tax payer - which I am taking to mean the rest of their taxalbe income is within the lower rate. Any clarfication would be great thanks

[@UK-Property-Tax-Accountants]

You are right and the example I provided does not work correctly. The reason for this is because the tax band will indeed increase beyond 18% when you have a total tax Welcomm of more than £50,270. I will need to take out this element of the video. Thank you for raising it as a problem and I apologise for any inconvenience caused.

[@UK-Property-Tax-Accountants]

I clearly had a senior moment I forgot to take my tablets that day when I came up with the example. In video I use an example of the game being just £50,000, which does actually work. Stupid me in this occasion .

[@czeital]

@@UK-Property-Tax-Accountants no worries. All tests my learing. Do I win a comp tax consulation lol :)

[@UK-Property-Tax-Accountants]

@czeital my a long way 🙌

[@bootangy]

stuck here im afraid

[@UK-Property-Tax-Accountants]

I am glad I got out to Spain 🇪🇸

[@beardyoldman8306]

Can I ask if you must leave the country before selling the property or within the 60 day CGT return period?

[@UK-Property-Tax-Accountants]

You would need to leave the country before selling

[@victablet3480]

​@@UK-Property-Tax-Accountantsand wait 5 years, right?

[@UK-Property-Tax-Accountants]

The five year rule does not necessarily mean you are avoid capital gains tax on selling residential property. This is where a tax specialist comes in to know the full details of UK legislation.

[@letsplaywitheesa1668]

@@victablet3480I believe gain on selling residential property, while you are non UK resident for capital gains tax, is still subject to Capital gains tax. However CGT on other chargeable assets is not subject to tax when you are non uk resident for tax purposes.

[@UK-Property-Tax-Accountants]

@letsplaywitheesa1668 CGT is indeed payable as a non resident

[@g.p616]

CGT on property is ridiculously unfair. A gain of £200,000 over a long time period takes no account of inflation at all!

[@UK-Property-Tax-Accountants]

That is a great point

[@LA-fr7fx]

CGT indexing was abolished in 2008 by Alistair Darling. An awful change, to ensure people do not improve their lives.

[@UK-Property-Tax-Accountants]

@LA-fr7fx agreed 👍

[@davidcalvert-smith4633]

If the videos by property 118 are anything to go by, none of this is necessary if you can put the growth shares into a trust. I appreciate the property has to be in a limited company, however, it would be interesting to do a video on the negatives of using a trust

[@UK-Property-Tax-Accountants]

There are a lot of issues with any tax planning concepts. We work with Property 118 and we agree with the benefits that they outline on a regular basis. As with any tool in at all Box you need to choose the right one to suit your needs