I have a number of units in Riga. In the past the capital gains tax position has been quite clear. No CGT to pay if you have held for a minimum of 12 months. However, there has been much speculation in the press recently that this rule is to change possibly this summer. In future you will have to hold for a minimum of three years to gain the CGT exemption. This is to attempt to counter inflationary pressures. Does anyone know: 1) Will this apply retrospectively to currently owned property? 2) What will the new CGT rates be? Any thoughts / comments gratefully received. Cheers. Alex.

Alex I understood the CGT free status applied to residents only. Do you live in Latvia? Gus

Hi Gus I am a UK resident. I am as certain as i can be that the CGT exemption applies to any EU citizen (and quite possibly any citizen from anywhere in the world)who owns property in Latvia. I have read many press and "trade" articles on the matter. Never once have i seen reference to the exemption applying to Latvian citizens only. Cheers. Alex.

Alex, I had the same opinion as you from all the articles I had read until I spoke with local tax advisors in Riga. I thnk the potential tax exposure may come when selling and changing details at land registry. Why dont you check for another opinion as it was several tax consultants that confirmed this for me. Good web site for contacts is www.117.lv. In any case would you not have CGT liability on worldwide gains being UK resident? Rgds Gus

Gus I will enquire further with an Accountant etc. I hope that you are not right! I am concerned to pay minimal tax abroad when selling property. Without going into detail, my affairs are arranged such that in the UK i pay minimal tax. Therefore what i pay abroad is very relevant. Cheers Alex

Hi Alex, plse let me know how you get on. Gus

Hi, I can put you in touch with my Baltic accountants if you would like? Andy

Hi Andy, Yes please, that would be really helpful. Thanks. Alex.

However you'll have to get approval from PS due to their forum regulations - if you give them a call and ask that might be the only way. I know the basic changes myself but I am not qualified to give that advice.