Tax Position on Sale of UK Property

I came to Cyprus on 1st November 2014 and sold a UK property on the 1st December 2014. The property had been in my ownership for 9 years. The first two years I rented the property and I lived in the property for the last 7 years prior to sale. What is the tax position in UK and Cyprus?

Capital gains tax in Cyprus is only payable on gains arising from the sale of immovable property situated in Cyprus and shares in companies represented by immovable property situated in Cyprus.

Therefore there is no Cyprus capital gains tax on the sale of your property in the UK. As you were UK resident for at least four out of seven tax years prior to 5 April 2015 the split year treatment does not apply which means capital gain tax could still be payable. However, 7/9 of the gain is tax free due to private residence relief and 2/9 is potentially taxable.

You will also have to consider Letting relief which is the lower of;

  • private residence relief
  • £40,000
  • the amount of any chargeable gain you make because of the letting
Clearly read can help you complete the calculations and your 2014/15 UK tax return.

If you have any questions about the sale of uk property whilst resident in Cyprus, please get in touch.

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