UK Tax - sell or rent HK property if repatriate?

Bought a place in 2008 to live in here. Will move back to UK before end of year - I have been outside UK for c. 10 years. Does anyone know the UK Tax rules on following scenarios? Just want to understand tax implications, I know many people may give me thoughts on whether better to sell or rent at the moment!!


Sell - CGT (currently sitting on c. 25% gain)

a) sell whilst still in HK (I think no tax)

b) sell in this UK tax year i.e before April 2012 (I think also no tax but not sure)

c) sell later on (I think pay tax on gain but do I pay no tax on time spent in HK?)


Rent - I assume I pay UK tax at marginal rate on any rental income.


If anyone can direct me to other threads or firms that can provide insight or advice that would be really welcome!

Many thanks walkup2, someone else has directed me to the HMRC6 leaflet which talks about residency definitions amongst other things.

Go see an accountant that deals with UK taxes, it will be worth the money. Everyones situation is different and therefore your needs will be different from mine or anyone elses. If anyone can recommend an accountant, that would be great, as I need to see one as well.


First thing to do is make sure you have declared that you are a non resident now, before you leave. There is a form you can fill in for that, not sure which one.


As mentioned above there is a difference between whether the property was your residence or let out. Good luck and post your findings here!

Have managed to speak to a UK tax expert and yes as long as you bought the property as your residence you can sell when you are back in UK and not be hit by any CGT for som time ..phew! The rules are complex and the CGT manual on HMRC website gives the full chapter and verse - sections 64200 to 65681. You only start to be liable for some CGT 3 years after your return to UK, and even then it is on a time apportionment basis. If you buy property in HK as an investment then you are hit for CGT if you only sell after becoming UK tax resident again.