# Returning to UK



## gjm1512 (Jan 4, 2014)

Hi all

I am looking to return to UK in May, after being out in Dubai for 2 years.
I would of been out for 2 full financial years (UK), only returned for less than 30 days a year, transferred money home to my UK bank account for mortgage etc, and don't own any property in UAE, as I have just rented.

As I return after the financial year and within 5 years I believe I won't be eligible for any income or capital gains tax.
Is this still the case?

Would appreciate someone's experience and/ or advice.

Gjm1512


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## expatsue (Aug 21, 2013)

You won't be liable for income tax if you meet the non-residency test in each year. For CGT it depends on various things, e.g. whether you owned the assest when you left the UK. This article is for people retiring abroad but is relevant. Page 1 explains the residency test, Page 2 income tax and page 3 CGT:
http://www.ailo.org/help/ukexpatretired.pdf

This may not be relevant to you but the Chancellor's Autumn statement changed the rules for non-residents re CGT on property other than their primary residence. From April 2015 CGT will have to be paid on such property whether resident or non-resident. See end of Page 71:
https://www.gov.uk/government/uploa...a/file/263942/35062_Autumn_Statement_2013.pdf

Whether expat or not, you used to have 3 years to sell a property which is now your second home but had been your primary property at some point (Private residence relief: final period exemption). However, this was also changed by the Autumn statement down to 18 months. This is relevant to us as in summer 'we' moved into a property we built in the garden and were working out how to sell the old house CGT free. We were about to transfer the property into my husband's name to avoid CGT following advice from his tax advisor as he has been non-resident in Saudi for 4 years (I didn't go out, he's moving to Dubai mid-Jan and I'm joining him then). It wasn't until we saw that bit in the Autumn statement that we realised we actually had 18 months to sell the house CGT free anyway. Some tax advisor - he didn't even tell us about the 3-year rule, as it was when he advised us to do the property transfer so we would have made that transfer unnecessarily. Anyway, we now have a further year to sell before the 18 months is up so hope the market in South Wales improves this year!


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## expatsue (Aug 21, 2013)

Sorry, made a spelling mistake, tried to edit it and ended up with two posts and can't work out how to delete the first post :redface:


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## gjm1512 (Jan 4, 2014)

expatsue said:


> Sorry, made a spelling mistake, tried to edit it and ended up with two posts and can't work out how to delete the first post :redface:


Hi thanks for the detail. I don't have a second home, so I am clear there. If I am honest I would rather stay a little longer, but family not so keen. So back to Blighty mid year!
Thanks again


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## twowheelsgood (Feb 21, 2013)

Whats the relevance of the five year comment ? Its not something I have heard mention before and am interested to see if I have missed something ?


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## gjm1512 (Jan 4, 2014)

Hi something I read on the HMRC website, and relates to temp UK resident
Take a look at the website.


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## xxxxxxxxxxxxxxxxxStewartC (Mar 3, 2012)

My experience/advice is to discuss these things with a qualified tax adviser in the UK.


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