exit stratergy re IHT and CGT.

[aidaj]

Have a BTL portfolio of 30 properties accquired over the last 10 years.
I am divorced with one daughter of 10 years old.
I am a Irish citizen living in N.Ireland, properties are in N.Ireland and UK mainland.
I would now like to live abroad where it does not really matter.
If I sold the properties I would have around 1million after existing mortages are paid.
Can I move abroad and sell the properties and avoid capital gains tax.
How long would I have to remain outside the Uk.

[jonblair123]

Have a BTL portfolio of 30 properties accquired over the last 10 years.
I am divorced with one daughter of 10 years old.
I am a Irish citizen living in N.Ireland, properties are in N.Ireland and UK mainland.
I would now like to live abroad where it does not really matter.
If I sold the properties I would have around 1million after existing mortages are paid.
Can I move abroad and sell the properties and avoid capital gains tax.
How long would I have to remain outside the Uk.


1. you would need to live abroad for 5 full uk tax years. Dont know anything about Eire taxation. I am not an expert, Ramnik is, and no doubt he will give you an authoritative reply.

2.or you could go to Belgium for one full Belgian tax year. If you do so, and you register there for Belgian taxation, and sell your properties, there is very little CGT to pay there for people arriving from abroad who sell assets soon after arrival! Having paid their very litle CGT, you could then return to UK, and have no further CGT liabilities. Once again, Ramnik could clarify this.

[Tax Accountant]

Have a BTL portfolio of 30 properties accquired over the last 10 years.
I am divorced with one daughter of 10 years old.
I am a Irish citizen living in N.Ireland, properties are in N.Ireland and UK mainland.
I would now like to live abroad where it does not really matter.
If I sold the properties I would have around 1million after existing mortages are paid.
Can I move abroad and sell the properties and avoid capital gains tax.
How long would I have to remain outside the Uk.

You would need to be a non-resident and not ordinarily resident of the UK for 5 complete UK tax years and also sell whilst still abroad. If so, there is no UK CGT.

However, you will need to consider the taxation position of the country to which you emigrate.

Ramnik

[jonblair123]

You would need to be a non-resident and not ordinarily resident of the UK for 5 complete UK tax years and also sell whilst still abroad. If so, there is no UK CGT.

Ramnik

Can you say exchange contracts whilst in uk, then go away and be away when completion occurs to qualify?

[Tax Accountant]

Can you say exchange contracts whilst in uk, then go away and be away when completion occurs to qualify?

Not many people realise, but the relevant date of selling a property is the date of exchange of contracts and not the date of completion. So the answer to your question is NO.

Ramnik

[Tax Accountant]

You would need to be a non-resident and not ordinarily resident of the UK for 5 complete UK tax years and also sell whilst still abroad. If so, there is no UK CGT.

However, you will need to consider the taxation position of the country to which you emigrate.

Ramnik

Further to the above reply, there are some tax haven countries where there is no tax at all, eg Dubai and Bermuda.

There are also other countries such as Malasia, Belize, and Panama which have created tax and residency breaks to attract affluent tax exiles.

There are also countries like Canada and Australia where the gain is calculated only on the increase in value only since you became a resident. So if you sell soon after becoming a resident of these countries, there is very little, if any, increase in value on which you would be charged CGT.

You are recommended to seek professional advice before moving forward in this direction.

Ramnik

[jonblair123]

There are also countries like Canada and Australia where the gain is calculated only on the increase in value only since you became a resident. So if you sell soon after becoming a resident of these countries, there is very little, if any, increase in value on which you would be charged CGT.
Ramnik

Any idea what the Canadian IHT rules are? I mean if I went to Canada, disposed of my assets, then gave em away:
a. Does UK still have a claim on my estate before 7 years are up?
b. What are Canada IHT rules for assets give away?

[Tax Accountant]

Any idea what the Canadian IHT rules are? I mean if I went to Canada, disposed of my assets, then gave em away:
a. Does UK still have a claim on my estate before 7 years are up?
b. What are Canada IHT rules for assets give away?

Don't confuse CGT with IHT.

It is relatively easy to avoid CGT by emigrating for 5 years but not so for IHT.

You will be liable to UK IHT regardless on your worldwide assets due to your ''domicile of origin'' which you normally acquire from your parents at birth. It is not too easy to abandon your domicile of origin and acquire a new ''domicile of choice''. To do this, you have to severe all ties with UK and set up new ties with the new country. There is also a deemed UK domicile where you have been a UK resident for 17 out of last 20 years.

Ramnik