UK CGT/residency query (was 'A good meaty question')

J

jeffinturkey

Guest
Hı all
I have a question that I am trying to resolve.

Myself and my wife (who is Turkish) have been living outside the UK
( in Turkey ) for the majority of the time since March 2005. ( Please see table of Entry and Exit dates according to my passport.)

I own three properties in the UK which I bought over the last 15 years the last one being just 2 years ago. I have been renting out the properties - properly declaring all income and expenses on my tax return.

I now wish to sell one of the properties and have heard that I
should complete Form P85 and claim to be non-resident since 5th April 2005.

This seems reasonable since I have only spent 32 days in the UK since that date.

Also I have not completed my 2005 – 2006 tax return yet on which I can tick the box to say that I was not resident.

My work here is self employed as a website designer but I spent six months training myself and only started earning a little money since November 2005.

I saw the IR booklet IR20 'Residents and non-residents' - chapter 2 - which has a section about Leaving the UK Permanently or Indefinitly. Paragraphs 2.7 and 2.8

This seems to indicate that my work is irrelevant in my case - is that correct ?

Am also I correct in thinking that if I first apply to become not ordinarily resident for my taxation then when I sell the properties in a couple of months time I will NOT be liable for any CGT provided I do not return for five years (except for a brief holiday). ?

Also given that my time in UK since March 2005 was only 32 days – is the IR likely to except my claim of non- residence since April 2005 ?

( unfortunately the table gets a bit scrunched up by this software ! )

Entered UK Left UK Time in UK Time Away Total
5-Apr-04 9-Sep-04 157 25
4-Oct-04 10-Nov-04 37 71
20-Jan-05 2-Mar-05 41 34
5-Apr-05 5-Apr-05


From 4/04 to 4/05 total days in UK: 235
and total days in Turkey : 130 Total in year :365

5-Apr-05 5-Apr-05 81
25-Jun-05 27-Jul-05 32 252
5-Apr-06 5-Apr-06

From 4/05 to 4/06 total days in UK: 32
and total days in Turkey : 333 Total in year :365


5-Apr-06 5-Apr-06
Still in Turkey - continually since 27 Jul 2005

I look forward to your comments.

Many thanks.
Jeff.
 
Re: A good meaty question !

Hi Jeff - As Askaboutmoney is aimed at Irish personal financial queries, it is unlikely that our posters will have expertise in UK personal financial queries. However, I'll leave your thread open on the off-chance that there is someone around who can answer this specific one.

Your cryptic thread title may discourage some readers from clicking into the thread. I've edited the title to refer to the query.
 
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