07: Overseas income and gains

1. Act quickly to claim tax relief for overseas holiday properties. Where you have run a commercial holiday lettings business with one or more properties situated in Europe, you could claim relief for losses made against your UK income. You could also claim tax relief if you made a gain since 6 April 2003 when selling a property you used for the holiday letting business. However, you must act quickly as these special tax reliefs are being withdrawn from April 2010.

2. Take full advantage of your non-residence status. If you are planning to live abroad for at least five complete tax years, you should be able to escape UK CGT on gains you make while you are abroad. You should claim non-UK resident status from your date of departure. However, for CGT purposes, HMRC will generally not accept that you are non-resident until the start of the tax year following the date of your departure. So if you can leave the UK just before 6 April, you will maximise the period that you are free of the UK tax system.

3. Claim tax relief for agricultural property in Europe. If you have made a gift within the last six years of agricultural property situated in the European Economic Area, you could hold-over the capital gain that arose on that gift. This eliminates the tax you paid on the gain, and increases the gain on the property in the hands of the new owner. However, this gain will not be taxed until the new owner disposes of the property. The gift may also be free of UK inheritance tax, and this can be reclaimed if that tax has already been paid on the gift.Last Updated