Non-Resident CGT broadened from April 2019

UK Capital Gains Tax (CGT) on non-residents will be extended to sales of all UK real estate property from 1 April 2019.

Currently, non-residents pay UK CGT on sale of residential property but the new single regime covers all real estate located in the UK (both residential and commercial).

Also chargeable to UK CGT from 1 April 2019 are indirect sales of properties via holding shares in a company owning a property. A new ‘property richness test’ will be applied; when more than 75% of their value is from UK land, the new CGT rules will apply.

Rebasing

The new rules only apply to gains arising from 1 April 2019 (companies) and 6 April 2019 (others). Property will be treated as if disposed of and reacquired at market value in April, so only value arising after will be liable to UK CGT.

Reporting and payment of CGT

From 6 April 2019, any non-resident CGT disposals should be reported to HMRC within 30 days of disposal, together with payment of any CGT which arises.

How we can help you

This is just an overview of the new rules and there are many other considerations and conditions which we can help you to understand.

If you are a non-resident in the UK making real estate disposals, we can guide you through your obligations and ensure you are optimising your tax position.

Please contact [email protected] or call 01527 558539 for further information.

Non-Resident CGT