If someone emigrates but continues to run a property rental business in the UK in which country would they be taxed and then if they sold the properties how would the captial gains be treated - any advise please.
lynn
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Withholding taxes warning!
The person emigrating should take advice in their new host country. I live and work in New Zealand and advise many UK expatriates, some with UK rental properties, and several of those will still have UK mortgages. Any interest paid to a non-resident (bank or otherwise) that does not have a branch here in NZ (and no UK bank does) is liable to withholding tax at the treaty/non-treaty rate. Where the UK bank (in this case) would not tolerate a deduction from its interest, the mortgage effectively has to be grossed up for the withholding tax. There are ways around it here, but the moral of the tale is that it may not be as simple as it seems, depending upon the country of destination. I would advise getting advice in the new country before leaving the UK.
Here and there!
The rental income will continue to be taxable in the UK.
The foreign country where the owner emigrates to may also tax the rentals but may allow relief for the UK tax paid.
The UK does not generally tax capital gains made by non-residents. Therefore any gains on disposals of UK property made after the owner becomes non-resident will not be subject to UK CGT. But the foreign country may tax those gains (calculated according to local tax rules).
If the owner becomes UK-resident again within 5 years, gains accrued before but realised after becoming non-resident become liable to UK CGT in the year of return.