Isle of Man

Does anyone know the answer to the following? If a resident of England moves
full time to the Isle of Man, and becomes a full time resident, then sells a
number of 'buy to let' properties in England, does English capital gains tax
apply or are the profits taxed in the Isle of Man ?
Reply to
bob
On Sun, 6 Aug 2006 12:18:31 +0100, "bob" wrote:
Neither.
In the UK if you are not resident you are not charged on capital gains and there is no capital gains tax in the Isle of Man.
Reply to
Peter Saxton
On Sun, 6 Aug 2006 12:18:31 +0100, "bob" wrote:
Further to my previous answer you would need to be non-UK resident for five complete tax years to not pay UK CGT.
Reply to
Peter Saxton
I know we have been celebrating Poland and England "winning" but...
Q2. I carry on a trade through a branch or agency in the UK, but I am not resident/not ordinarily resident, am I liable to capital gains tax when I dispose of assets held for the purpose of this trade?
A. Yes, you are liable to capital gains tax on these disposals.
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Reply to
Troy Steadman
Thanks for all the advice - I.m going to get in touch with my accountant before 'a lifetime change' From the information I have pick up I think if you live on the Isle of Man, rents received in England can be taxed in the IOM. So maybe the sale of property ( after 5 years - I can live with that) is capital gain free.
Reply to
bob
If this is something you are vagely contemplating:
1) Peter used "a few" to translate your "a number of". "A number of" sounds like 5 or 6 to me, and that sound like a "trade".
2) I don't know about the IOM, but if it is like Jersey then you cannot simply "move" there.
3) What makes you think "rents received in England can be taxed in the IOM"?
Reply to
Troy Steadman

Where do you declare rents received on your tax return now?
If you are abroad you will get tax deducted by an agent.
Reply to
Peter Saxton

If their tax affairs are up to date they can apply to be paid Gross:
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But this surely is another reason why the great House Price Crash keeps getting deferred. No matter *what* happens BTL's will *never* sell because they are scared witless of CGT.
Even if the OP succeeds in living in the IOM for 5 years, succeeds in bypassing the CGT, if he comes back without leaving a decent interval, UK anti-avoidance legislation kicks in.
I reckon he's stuck with the rest of us in Blighty :)
Reply to
Troy Steadman
No matter *what* happens? *What* if they can no longer afford the mortgage and are about to get repo'd? Or if (later in the game), their previous paper CG go back down to zero as house prices fall? If the CG is zero, there's no CGT to pay!
Reply to
Tom Robinson

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