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Tax on an Inherited Property

Question
As a non-resident, if I sell an inherited property what are the tax implications?  Does this change if I rent it for a few years before selling it?

Arthur Weller Replies:
If you are non-UK resident and not UK ordinarily resident then you will not have to pay UK capital gains tax (CGT) when you sell a UK property. However if you acquired the property while you were UK resident, and then went abroad and then sold the UK property, then although you do not have to pay any UK CGT when you sell the property, if you return to the UK to become UK resident again, you could be liable to the UK CGT that you didn’t previously pay, in the year of return. If your period of non-UK residence included five full consecutive tax years or more (e.g. 5 April 2012 to 6 April 2017), and you sold during one of these years, then you will not have to pay any UK CGT in the year of your return.   

Property Tax Insider This sample question and answer is taken from Property Tax Insider, a monthly UK tax saving magazine for landlords and property investors.

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