CGT -non resident Landlord

CGT -non resident Landlord

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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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By TaxationPete
23rd May 2011 09:40

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

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By Martin B
23rd May 2011 13:04

TaxationPete
Thanks for your reply.
Are you saying tick No to the supplementry page and white space on box 19 on page TR6

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By TaxationPete
23rd May 2011 15:12

Depends

Have you been reporting her UK rental income in section 16 or on seperate additional supplementary pages. Regards Peter

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By TaxationPete
23rd May 2011 16:19

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

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