As an expat residing outside the UK, you may face the possibility of paying Capital Gains Tax (CGT) when selling your property in the UK.  Even if you are not UK resident, certain circumstances may still require you to fulfil this UK tax obligation. We can assist you with tax planning and provide our expertise about UK CGT on properties and assets. 

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Annual exemptions are available and when the calculations of CGT will be based on your total income in the tax year.  It is important to note that CGT does not apply to your primary residence. However, if you own multiple residential properties, you may have a higher level of exposure to CGT. 

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When is Capital Gains Tax paid?

In the UK, CGT is applicable when selling an asset or a property that is not your main residence. It must be paid within the specified time limit in the country. 

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The definition of an "asset" is broad, and typically includes the following:

• Most personal property exceeding £6,000 in value, excluding vehicles for personal use

• Property that's not your home

• Your main property if you've let out, used for business, or if its extremely large

• Shares that are not in an ISA

• Personal independence Payments

• Business Assets

• Gifting Assets

• Disposal of certain cryptocurrencies

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In general, CGT is applicable when selling valuable possessions, although some private possessions are exempt. Additionally, wasting assets (with a life expectancy of 50 years or less) are typically exempt from CGT. 

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Specific rules regarding CGT may apply to individuals returning to the UK after living abroad. In such cases, tax is usually payable upon return within a specified period.  However, you may also be liable to pay CGT on any property sales or trades conducted during your non-resident period. 

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