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I sold an investment in December 2017 for 100,000 GBP (net…

I sold an investment in...
I sold an investment in December 2017 for 100,000 GBP (net sales proceeds) .
I bought the investment 15 years ago in 2002 for the total cost of 40,000 GBP
I have been working overseas as an expatriate employee for 20 years, from 1993 until i retired and returned to UK in May 2013, in a country that does not tax capital gains and which has a double taxation treaty with UK.
The market value of the investment at the time i returned to the UK and became a UK Tax resident was 70,000 GBP.
I am a non dom, on the grounds that i was born and bought up outside the UK.What will be my taxable Capital Gain in the UK in the 2017/18 tax year i.e. in the tax year in which i sold the investment?
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Answered in 7 days by:
1/14/2018
bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 4,656
Experience: FCCA FCMA CGMA ACIS
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Hello, I am one of the experts on Just Answer, and pleased to be able yo help you with your question.

What exactly was the investment?

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Customer reply replied 1 month ago
investment in a Global Equity fund

You are only liable to UK Capital Gains Tax (CGT) for the gain after your return. Only residential property of ex pats is liable to CGT whilst they are away.

Your gain is 100K - 70K = 30K. Deduct 11.3K, non cumulative Annual Exempt Amount (AEA), leaves 18.7K exposed to tax at 10% or 20% or a combination of the two rates depending on your income including the gain in the tax year of disposal. WA worst case scenario is a tax bill of 3.74K.

I do hope that you have found my reply of assistance.

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Customer reply replied 1 month ago
Thank you for your prompt detailed reply for which i am pleased. Because i have other similar investments, i would like to ask a final question, please:
Can i apportion the Capital Gain on time basis? In my above case, i held the investment for for 15 years (from 2002 to 2017), out of which 4 years (2013 to 2017) as a UK tax resident. Therefore, UK capital gain =4/15 x60,000=16,000. I know in this case is not to my benefit to do so, but it may be in other cases. Do i have the choice?

The normal CGT computation assumes that the value of the investment rises evenly with time. We all know it doesn't, but that is how it works! It is quite common for this formula to be used.

Please be so kind as to rate me before you leave the Just Answer site.

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