Capital gains tax

Capital Gains Tax is charged when you sell or otherwise dispose of an asset. The tax is applied to the sale price less any allowable costs, which will typically include the purchase price.

If you are selling a property, you may be able to deduct some of the costs related to the sale and purchase and some of the costs incurred when refurbishing the property.

The tax charge will be calculated on the market value rather than the sale proceeds in some circumstances. These situations include when you give the property away, when you sell it at a reduced cost or pass it to a family member or similar.

Your liability to UK Capital Gains Tax will be impacted by your residency and domicile status. If the assets are located in a different country, the tax treatment of capital gains in that country will also need to be considered in conjunction with any relevant Double Taxation treaties.

The UK has introduced a Capital Gains Tax charge on the sale of UK residential property by non-residents. Our advisors can help non-UK residents navigate these new rules and help you to decide when and how to dispose of the assets in order to realise the most desirable tax outcome.

It may be more tax efficient to sell assets prior to moving overseas, or prior to your return to the UK, depending on the type of asset, the level of gain and the country you are moving to or from. We can help you to examine the Capital Gains Tax regimes in all relevant countries to establish, if changing your residency status, when might be the best time to sell. It is for this reason that we always recommend discussing these issues with one of our consultants prior to selling the asset.