Ask Money: what are the CGT rules for UK non-residents?

For tax purposes, I am resident in Australia, where I have been living since 1974. I have some M&G investment funds that I have held in one form or another since 1983. If I were to sell these shares, would I be subject to CGT and/or withholding tax, and how much would I have to pay? Would M&G act on behalf of HMRC and retain the tax payable, or would it deposit the gross proceeds from this sale in my UK bank account?
Joseph Zekan, by email

10 little-known tax traps and how to avoid them

One of HM Revenue & Customs’ favourite sayings at this time of year is that “tax doesn’t have to be taxing”, but with the UK tax code 10 times longer than the complete works of Shakespeare, there are countless tricks and traps to navigate.

1) Capital gains tax on main residence
A common misconception is that the sale of your main home is exempt from capital gains tax (CGT), but this is not always the case.

Four tax clever tricks that work a treat

There’s a raft of different tax breaks on offer in the UK, but a few are often overlooked by savers and investors. Using them correctly means you can reduce your tax bill and keep as much of your investment returns as possible. Here is a guide to some of the possible tips and tricks you could use (but speak to a financial adviser for proper tax planning advice).

Ask Money: how do I arrive at the right capital gains calculation?

October 17, 2019

In 2011, my civil partner inherited his mother’s house, which had a probate value of £89,000. In December 2018, we transferred the house into joint ownership between my partner and me, using a solicitor. We have just sold the property for £125,000. The house was rented between being inherited and being sold. We spent about £3,000 on central heating and electric upgrades when we acquired it. 

Ask Money: can we use our wives’ CGT allowances?

July 29, 2019

My brother and I own equal shares in a house valued at £120,000 that we need to sell soon. The original cost was approximately £60,000. It is registered in our two names only. For capital gains purposes, are we able to use each of our wives’ £12,000 allowance as well as our own to minimise the impact of capital gains tax, or would we have to register our wives as co-owners to be able to do this?
Allan Johnston, by email

Ask Money: how will CGT play out with family in Australia?

July 1, 2019

I have a discretionary trust that has run for almost seven years. Soon it will pass out of my estate into the estates of three trustees, my daughters. If they sell the property in the trust, they will be liable for capital gains tax. One of them lives in Australia and does not pay UK tax. Assuming the estate is divided equally, a third to each, there would be capital gains tax due to HMRC on two-thirds of it. But how would my daughter in Australia be treated?
Peter Abbott, by email

Ask Money: will my idea for passing on a buy-to-let flat work?

June 17, 2019

I have a buy-to-let flat that will trigger a big capital gains tax bill if I sell it. Can I pass ownership in tranches to my daughter (10% a year) so that the gain on each tranche is within the CGT annual exemption. If I live for seven years after the final transfer, I assume there would also be no IHT to pay. The flat has no mortgage. The only downside I see is the legal fees for each transfer.
Eddie Montreaux, Brighton

Ask Money: who pays CGT on a designated account?

May 15, 2019

When our child was born, we set up a designated investment through Witan. Now he is approaching 18, we will shortly be transferring this investment across to him. Could you advise whether my partner or I need to declare anything on our tax returns when this is transferred, or will it all fall into his allowance for CGT?
David Griffiths, by email