Capital Gains Tax

[sealion]

I will shortly be making a large profit on a property development and am expecting a CGT of around 80k. Is it possible for me to move abroad for a year or so to avoid having to pay this?

[funnywebsite]

Can you move into the property development for a few months before selling it? If so then you don't have to pay capital gains tax. You just need to proof it is your home and you are living there. I cannot remember how many months but at least 3. Next year will be better because they are changing the pension rules to allow certain things to be paid into your pension

[kags]

No. You would have to prove that you had left the UK permanently, and had therefore become not ordinarily resident in the UK for tax purposes. Even then, if the gain took place after you left, but in the same tax year as your departure, you would only escape tax if you had previously been not ordinarily resident in the UK for much of the previous 7 years. You might also become liable to tax in the country you move to.

As regards moving into the property as mentioned above, this would not help you at all, as any possible Principal Private Residence Relief is disallowed on properties bought purely for the purposes of realising a gain.

As there is such a lot of money at stake, I would suggest you take professional advice, to see if there are ways of legally minimising the tax you pay.

[Gef]

Hopefully not.