Update on UK CGT for Non-Residents

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3
Dec

Update on UK CGT for Non-Residents

03.12.14

The UK recently announced that it will be changing the law in respect of the application of tax to non residents on the disposal of UK residential property.

 

The announced proposal is intended to have application from 6 April 2015 and has been going through a consultative process, the outcome of which was recently released.

 

As a result it is likely that any gain arising before 6 April 2015 will not normally be subject to the charge.  The question of how that is determined has been raised and addressed as part of the consultation process and in essence taxpayers have a number of options, the two most applicable options are as follows:

 

  • The  default position will be to ‘rebase’ the property to its market value at 6 April 2015 so that only the gain realised over that value (after deduction of any allowable costs incurred after then) is  subject to tax; or,

 

  • Taxpayers will have the option to ‘time apportion’ the whole gain over the period of ownership. This option will not be available in certain limited circumstances.

 

If you have any questions in relation to the above changes, please contact your relevant ESV engagement partner on 9283 1666.

 

Article by David Prichard