Dear UK Tax advisor: I own a property in London UK since 2003.

Hi Gonzalo

Thanks for your response

To avoid capital gains completly then the sale should take place by June 2013, as the time you lived there plus the last 36 months of ownership are exempt from UK Tax under the private residence relief rules. But if you hold onto this property for longer than June 2013, then as advised already a capital gain will arise, and as you are not planning to return to the UK, then you have no UK capital gains issues in the UK, eafter this time as you are not UK resident, but any sale after June 2013, will always have a capital gain issue in the country in which you reside.

At this point I can then only advsise how the UK treat capital gains, and as you do not plan to return to the UK, this advsie may prove irrelevent, as its the country in which you reside, when the sale takes place, then you need to explore the capital gains position with.

But I can advise if you transfer this property to your wife, then any exemption/relief due for the time you have lived there and the last 36 months of ownership, this may be lost, as your wife will not qualify for these reliefs, as the transfer will be taking place after the proeprty has ceased to be wither of your main residences. And she would not be due any private lettings releif at this time.

For this to become your main residence again, you would ahve to return to the UK as a permanant resident, that this property be wehere you conduct your life from, with all your personal possessions with you, and the same would apply for your wife, if you chose to transfer this property to her.

The move back would have to be undertaken before June 2013, so no capital gain arose.

Your best bet, sell before JUne 2013 to avoid capital gains completly.

Thanks

Sam