Tax implication

[Popchip]

Hello,

Can someone tell me tax implications of the following cases?

1. I own only one property but the property has been rented out for 2 years after living in the property as a main resident for over 15 years previously. During the 2 years time, I was living in a rental property. Do I need to pay capital gains tax when I sell the property even if I own only one property? I am planning to buy a new property as my main home after the sale.

1. While I live outside of the UK, I rent out property I own in the UK. I own only one property. I have no other income receiving in the UK other than the rental income. I will receive income outside of the UK and will pay the tax in that country. Will the tax bracket of the rental income be based on I have no other income in the UK? So will the tax rate be lower than when I receive salary in the UK?

1. CGT is only payable if you own more than one property.
2. It depends on which country you were living in. Some have tax agreements with the UK and others do not. You really need more expert advice but depending on which country you would either need to declare the UK income in the country where you were living in or declare it separately in the UK.

1 - yes you probably will need to pay capital gains tax if you're selling a property that us not your current home, even if you only own one property. This was a horrible shock for someone I know who was in exactly this situation and assumed if wasn't payable. www.gov.uk/tax-sell-property

Also bear in mind if you want to buy another property in the UK and you are not currently a permanent resident in the UK you have to pay additional stamp duty.
If you become resident again (up to a year either side of purchase) you can claim the extra stamp duty back.