Steve Wheeler comments on capital gains tax charge on non-residents in Solicitors Journal

Question marks remain over some aspects of the government’s tax policy for the disposal of property by non-UK residents, says Steve Wheeler.

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. Further details were included in a consultation document published on 28 March 2014.

This change would bring the UK’s tax system into line with those of a number of other developed economies.

The announcement followed the introduction from 6 April 2013 of the Annual Tax on Enveloped Dwellings (ATED) regime, under which a CGT charge can apply to certain taxpayers (mainly companies), whether UK or overseas resident, on disposals of residential property valued at more than £2m (a limit that is due to fall to £500,000 by April 2016).

Under current legislation, other non-UK residents do not normally pay tax on disposals of UK residential property or any other UK assets, unless, for example, the sale is part of a trade being carried on in the UK.

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This article was first published in Solicitors Journal.


Steve Wheeler

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