CGT on Non Resident sale of Residential Property

CGT on Non Resident sale of Residential Property

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Can anyone please confirm whether valuations for the purpose of the new CGT charge on non residents should be made on 5 or 6 April 2015?

Also, the Finance Act says that a return must be notified to HMRC within 30 days of the completion of the sale.  Does anyone know whether HMRC have designed a standard form or wording for doing this and, if so, where I would find it?

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By Dowland
07th May 2015 12:33

One other point occurs to me

Does anyone know the basis on which the valuation as at either 5 or 6 April 2015 should be undertaken?   The small number of non residents I deal with have residential properties in the UK which are rented out.  Therefore, is that valuation they should be obtaining based on the open market value of the property or subject to any existing tenancies.  Where these are ASTs I suspect the difference will be minimal or non existent.  However, if there is some other type of tenancy in place should the valuation take account of this?

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By Anna Lysing
07th May 2015 13:40

Why not

Ask the person doing the valuation to provide valuations for both 5 and 6 April, to be on the safe side?

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By Dowland
07th May 2015 18:09

I agree this is easy enough but I would like to kow, for my own peace of mind, the actual date it should be valued for the purposes of the legislation.

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By User deleted
07th May 2015 16:18

It's 05 April 2015

Read Schedule 7, Part 3, Para 5(3) here

notional post-April 2015 gain or loss” means the gain or loss which would have accrued on the disposal had P acquired the disposed of interest on 5 April 2015 for a consideration equal to its market value on that date;

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By Dowland
08th May 2015 14:53

Thank you taxguru for the nudge in the right direction.  I had tried to read Schedule 7 and related parts prior to posting the question but missed this bit (not surprising given it runs to some 70+ pages!)

I have also now found the return which needs to be completed within 30 days of completion on HMRC’s website.  These seems to require a computation even for those clients who are not making an immediate payment but are doing so through the SA system as they are already within SA.  Is that correct?  If so, it does not give the sellers, for it is they rather than agents, much time to organise with their agent the production of a CGT comp.

Is that others’ understanding of the situation?

Going on from this I have now read HMRC’s Q&As dated 18 March 2015 and their guidance on .gov.uk.  This says, as other articles I have read, that if the property was previously the non-residents PPR then they are able to claim the last 18 months PPR post 6 April 2015.  It also says that other reliefs such as Lettings Relief and Absence Relief are also due.

I assume that these additional reliefs will only be available if they occur post 6 April 2015.  Can anyone given an opinion as to whether they would apply where the taxpayer has been non-resident for a number of years and may have qualified for these reliefs before 6 April 2015?  My question is, I think, if they qualified for absence relief for say 3 years before 5 April 2015 would this “use up” that relief if they would also qualify for the relief after 6 April 2015?

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