CGT payable?

[boredbird]

Hello
My mother has been living abroad for 21 yrs and is coming back to live in Uk next year. She will have sold a property abroad, and has purchased a flat in uk two years ago, ready for her return, which is currently let out. When she brings the proceeds of the sale back to UK, will she be liable for any tax on the money. She is over retiremant age.

[Tax Accountant]

Hello
My mother has been living abroad for 21 yrs and is coming back to live in Uk next year. She will have sold a property abroad, and has purchased a flat in uk two years ago, ready for her return, which is currently let out. When she brings the proceeds of the sale back to UK, will she be liable for any tax on the money. She is over retiremant age.

Provided she has sold the property abroad whilst she was still a non-resident of the UK, she will not be liable to UK CGT on the gains. There is no tax to pay on bringing the money to this country.

She needs to check the tax position of the foreign country in which the property is sold.

The UK property will not count as her residence, and therefore not benefit from PPR relief for the period from date of purchase upto the date when she actually starts using it as her home.

Ramnik