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Old 30.12.2020, 13:46
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Re: CGT on foreign property

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Thank you Farman. As usual a fountain of wisdom

Just two short questions if I may

1) are you sure about your example of June 2020 meaning the earliest to leave is 6 April 2026? I have to say that I have not seen any guidance on this from hmrc website and I thought it was five years departure but you seem to have interpreted that as five years not including split tax years. Do you have any links to support that because that could mean a further year of residence required

I mean suppose someone came 6 April then that could make a difference then if they came on 4 April as an extreme example

2) if what you say is correct and your permit expires after five years what options do you have if you do not have a job and you have decided not to use the rav or you do not qualify for the rav bearing in mind that extensions for Uk citizens are no longer easy after brexit with strict quotas of number of permits they will allow
The rule is 5 tax years, the UK tax year runs 6th April to 5th April the following year. 6th April is a day too late, so you would need to physically leave the UK earlier.

Then you would have to go 'on holiday' for as long as required or get a job, any job in another country rather than return to the UK. The whole point is, tax avoidance is not made easy to achieve.

EDIT, from Phil's link, you need to look closely, possibly you need 6 years & 5 UK tax years.

When do the temporary non-residence rules apply?
Very broadly, you will be temporarily non-resident in the UK if:

you have been resident in the UK for at least four tax years (out of the seven tax years prior to departure); and
you leave the UK and become non-resident; and
you then return to the UK after a period of non-residence lasting five years or less.

Last edited by fatmanfilms; 30.12.2020 at 13:56.
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