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Readers' forum : Hong Konged

01 March 2016
Issue: 4540 / Categories: Forum & Feedback

Calculating the capital gains tax liability of a non-resident on UK property.

Alex lived in the UK until 2014 when he moved to Hong Kong for work. He owns a house in London which he bought in 2005 for £400 000. He lived there until he left the UK and it has since been let on commercial terms.

Alex is planning to retire in about five years. He is likely to return to the UK but may not live here long term. If we assume that he sells the London house in 2017 for £900 000 and returns to the UK in 2020 what are the tax implications?

I understand that a charge under TCGA 1992 s 10A applies in the tax year Alex returns. I calculate the taxable gain as £23 500 being the gross gain of £500 000 less £437 500 of only or main residence relief (for the period of actual residence and the previous...

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