Going to work overseas sounds great, sun, sea or a new city to explore coupled with an income. But there are pitfalls that many who are thinking of emigrating don’t consider, the tax implications of what you do with your house being a key one. And, not surprisingly with tax, it all depends on what you do with it.
With residential property, even if not resident for tax, you will be liable for Income Tax on rental profits and Capital Gains Tax (CGT) if and when the property is sold. Now, you can use Principal Private Residence Relief to reduce the CGT on a sale, but levels of relief will depend on time occupied, how it was occupied and if there is any letting relief due.
So, what should you consider when looking for the maximum amount of CGT relief available? Sell it before you go, leave it empty, let it out (return or don’t), or sell it once you’ve gone. You will inevitably have to think about any income tax and capital gains tax that could be due if you go down any of these routes.
If you’re thinking about working abroad, to get the advice you need we’d strongly suggest that you talk to an accountant who’s no ordinary bean counter.
Contact your local AIMS Accountant.