My client was a non resident landlord (UK domiciled) for many years. It was never her main residence. The property was been empty for over a year and in October 2010 it was sold. As she has been non resident for over seven years I am aware no UK CGT is applicable ( as non resident for 5 complete tax years)
Is the CGT supplementary page required to be completed in the 2011 tax return? I am not sure and was thinking of mentioning it in the white space.
So that I fully understand had she been also non domiciled how would this chnage the completion of the tax return?
Thankyou
Replies (4)
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Facts
Detail the disposal in the white space. If you do not declare the disposal HMRC may trigger an enquiry as the rental income which the client has been declaring will suddenly stop and raise an eyebrow or two. Be aware that IT or CGT will/may be due in the country where the client lived at the date of disposal. Regards Peter
Depends
Have you been reporting her UK rental income in section 16 or on seperate additional supplementary pages. Regards Peter
Re Read
I have re-read you post and you say the property was empty prior to the disposal so there may not have been any reportable income although there may have been a loss. There is a requirement to inform HMRC of any disposal if the consideration (sale price) was £42,400 or more, then you have to declare it. Regards Peter