News

Introduction of CGT for non-residents

  • April 24, 2014
  • By Hunters Law

The Government has published its expected consultation document (announced in the Autumn Statement) on the extension of Capital Gains Tax (‘CGT’) to non-residents selling UK residential property, so as to bring their tax treatment in line with that of UK residents.

The charge, which relates only to gains arising from April 2015, will apply to non-UK residents disposing of UK property used, or suitable for use, as a dwelling.  Unlike the current rules for ‘enveloped property’ (e.g. owned by a company), it is proposed that gains made on the disposal of residential property used as an investment are also subject to CGT.

The rate of tax charged will mirror the higher and lower rates of tax for UK residents, e.g. 18% or 28% on gains made, depending on the non-resident’s total UK income and gains.  The annual exemption is likely to be available to non-resident individuals, as will ‘main’ residence relief, although the latter will only apply in limited circumstances.

It is proposed that different forms of non-resident entities will be subject to CGT, including trustees and partnerships, but the government is yet to confirm the applicable rates of tax.

A new delivery mechanism is suggested for the reporting and payment of CGT by non-residents, with a form of withholding tax operating alongside an option to self-report the tax due.

If you would like more detailed advice on the implications of the extension of CGT to non-residents, please contact the partner at Hunters having responsibility for your legal matters, or (for new enquiries) please contact a member of our Private Client team.

Related News

Feb 09, 2021
Molly Wills discusses The Office of Tax Simplification’s First Report on Capital Gains Tax, in Private Client Business
Jan 06, 2021
Molly Wills discusses The Office of Tax Simplification’s review of Capital Gains Tax
Nov 30, 2020
Julia Richards examines section 33 of the Wills Act 1837 in WealthBriefing
Nov 13, 2020
Julia Richards examines section 33 of the Wills Act 1837 in the case of Re estate of Ellen Beatrice Brackstone [2020]
Oct 29, 2020
Julia Richards examines Section 33 of the Wills Act 1837
Oct 28, 2020
Daniel Watson examines Wills being witnessed remotely by video-link in Taxation
Sep 21, 2020
Hunters recognised as one of the 2020 eprivateclient Top Law Firms
Sep 04, 2020
Matthew Yates comments on video wills in the Financial Times
Aug 11, 2020
Daniel Watson examines the government’s newest legislation regarding Wills in Lawyer Monthly
Aug 04, 2020
Matthew Yates examines the recent change to the law of organ donation in England in STEP Journal

© Hunters Law LLP 2021 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)