Are expats liable for capital gains tax on UK property sales?
Q I have lived outside the UK for many years and, as far as I know, do not have to pay capital gains tax (CGT) on UK property. My parents are selling their rental property and will have to pay CGT on this sale. If they gift the property to me and I sell it, would this avoid the tax? SA A Assuming you have been living outside the UK for at least five years, you are right in thinking you probably won’t have to pay CGT on any gains you make on the disposal of any assets (whether in the UK or abroad) you owned before you left the UK. However, you may still be liable for the equivalent of CGT in the country you currently live and are taxed in. But as far as your parents’ rental property goes, they cannot avoid CGT by giving the property to you. A gift of an asset liable for CGT, such as property or shares, counts as disposal for CGT purposes. So giving you the property would give rise to a tax bill in the same way it would if they themselves sold the property.
