In a widely predicted move, and one no doubt with a general election in mind, the government will introduce capital gains tax (CGT) on future gains made by non-residents disposing of UK residential property from April 2015. We expect further guidance on this in April 2014. This brings the rules for non-UK residents in line with UK residents when selling second properties in this country.

In an attempt to reduce the incentive for those with multiple homes to exploit the rules, there will also be a reduction to the capital gains tax principle private residence relief (PPR) from the current 36 month exemption to 18 months.

A reduction to 18 months from 36 months will have a substantial effect for capital gains tax but there is also the CGT annual allowance and the interaction with letting relief to consider..