The government announced in the 2013 Autumn Statement that it intended to introduce a capital gains tax (CGT) charge on the disposal of UK residential property by non-residents with effect from April 2015. The details of the proposal were outlined in a consultation document published on 28 March.
This followed the introduction from 6 April 2013 of the ATED (Annual Tax on Enveloped Dwellings) regime under which a CGT charge can apply to UK residential property owned by a non-resident company where the property is valued at more than £2 million (a limit that is due to fall to £500,000 by April 2016). Under current legislation, other non-UK residents do not pay CGT on disposals of UK residential property or any other UK assets (unless the sale is part of a trade being carried on in the UK). The government now intends to extend CGT to non-UK residents (whether individuals or companies) holding UK residential property directly, irrespective of the value. The charge will also apply to disposals of residential property by partnerships and trusts where a partner or trustee is non-resident.
Further details are in our factsheet here
. Moore Stephens has now submitted its response to the government’s consultation, and this is available here
ContactsUK Private client tax team
Related linksPrivate client services