Useful ideas for UK expatriates returning home

Returning to the UK? A Neat Way to Mitigate CGT On Any Property Sales

If you own property in the UK and have held it for some time, then there is a strong chance that you will have a sizeable Capital Gains Tax (CGT) bill if you decide to sell it after you return.

The simplest way to avoid CGT, is to sell the property before you return.

However, if you want to keep hold of the property, another way to mitigate any CGT liability would be to transfer the property into a specially created short term trust.

For expats who are returning to the UK.

You would need to do this in the tax year prior to your move.  The way it works is that  by gifting the property into a trust, any gain is effectively realised. You are not taxed on that gain as you are still non resident, and the then trust acquires the property at its then market value.

After 12 months or so the trust can then be wound up and the property returned to you. If you then decide to sell it, its cost for tax purposes is the value at which you received it from the trust.

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