Expatriate Taxation Residence Domicile Moving Overseas Returning to the UK Letting Your Property Capital Gains Tax Tax Advice for Pilots Tax Rates for 2007-8 and 2008-9

Capital Gains Tax

Capital Gains Tax (CGT) is charged if you make a profit when selling an asset. Some assets, such as your principal private residence and your car, can sometimes be exempt, and there is also an annual exemption threshold. In 2007/8 this is set at £9,200. Any profit over this amount is charged CGT according to your personal tax rate.

Broadly all UK residents are subject to Capital Gains Tax on world-wide capital gains. For expatriates the situation may be different and there are a number of key questions which will determine liability including:

How long you lived in the UK before leaving
The date you left the UK
The date you plan on returning to the UK
The date the asset was purchased
The date the asset is to be sold/was sold

This is a complex area of tax planning. Our new article on Capital Gains Tax, detailing the areas you should be aware of, is available in our Members Library . You can also download a copy of our ‘Moving abroad to escape Capital Gains Tax’ guide from the Members Library.

We can assist with this, or any other aspect of tax or financial planning. For help or advice please contact us.