Question:
I own a house with my ex-husband. I left the UK in November 2004, but my ex-husband continued to live in the jointly-owned house. No money changed hands during the years 2004 - 2011 (August). I have been a permanent resident since 2005 and Canadian citizen since December 2010. Do I have to pay tax on my share of the house when it sells? The house is now on the market.
Arthur Weller Replies:
You will not have to pay any UK capital gains tax (CGT) when the house is sold. This is because at the time of the sale you are non-UK resident and non-UK ordinarily resident. Since you have been non-UK resident for five consecutive tax years since you left the UK (April 2006 to April 2011) you are not classified as ‘temporarily non-resident’, and you will not have to pay any UK CGT even if you return to the UK after the house is sold.
