CGT on Property Abroad

[Tassotti]

I think I remember reading on here some time ago that a property owned abroad can be nominated as PPR, therefore not paying CGT on it (in UK). Obviously, the tax of the country in question will still apply.

Have I remembered correctly?

Tass

[Tax Accountant]

I think I remember reading on here some time ago that a property owned abroad can be nominated as PPR, therefore not paying CGT on it (in UK). Obviously, the tax of the country in question will still apply.

Have I remembered correctly?

Tass

If you have only one property which you use as your home, then this is the only residence which automatically benefits from PPR relief.

A married couple can only have one property between them to benefit from PPR relief.

If you have more than one property which you use simultaneously as your home, only one property can benefit from PPR relief. This will be the property which is considered to be your main home and a nomination is not required for this. However, instead if you wish to have the secondary home to benefit from PPR relief, you can make a nomination in favour of the secondary property by writing to your tax office. Such a nomination has to be made within 2 years of having the use of more than one property as your home. A change in this situation triggers a new 2 year period. For example, if you have missed the time limit, you can let your property for 6 months. Once it is vacated and you start using it again as your secondary home, you have another period of 2 years to make a nomination in favour of this property. But this cannot be used to cover the earlier use of the property as your secondary residence. Any nomination can be back-dated by up to 2 years.

The property to benefit from PPR relief, as main residence or secondary residence by nomination, can be in the UK or overseas.

But it must be used as a home. A property which is being rented or standing unused cannot be considered as being used as a home.

Any property which has been your only or main home and qualified for PPR relief, also automatically benefits from the final 3 years ownership being exempted from CGT.

I hope this helps.

Ramnik