Capital Gains Tax (CGT) is charged if you make a profit when selling an asset. Some assets may be exempt, such as your principal private residence and your car, there is also an annual exemption threshold. In 2007/8 this is set at £9,200. Any profit over this amount is charged CGT according to your personal tax rate.

In general, all UK residents are subject to Capital Gains Tax on world-wide capital gains. For expats, exemption depends upon any previous absence from the UK and the length of time you have been overseas. There are a number of key questions which will determine liability including:

• The date the asset was purchased
• The date the asset is to be sold/was sold
• The date you left the UK
• How long you lived in the UK before leaving
• The date you plan on returning to the UK

This is a complex area of tax planning. We can guide and assist with this, or any other aspect of tax or financial planning.