Captial Gains Tax For Non-Residents Disposing Of UK Residential Property
Previously UK capital gains tax was only applicable to those persons resident in the UK. However from 6 April 2015 this was extended to include non-UK resident individuals, trusts, personal representatives and narrowly controlled companies disposing of UK residential property.
Non-UK residents will be subject to the same rates of tax as UK taxpayers (18/28% for individuals and 20% for companies), but only gains accruing from 6 April 2015 will be subject to tax.
The non-UK resident is able to ‘rebase’ the property to 6 April 2015 market value or, if more beneficial, can either time-apportion the gain or have the entire gain/loss taken into account.
The gain needs to be reported to HMRC using a NRCGT return (non-resident capital gains tax return) which needs to be filed 30 days after completion of sale. Tax is also due at that time if the seller does not have an existing self-assessment record. If they do have a live record, payment is due under the normal self-assessment regime.
The NRCGT return has to be filed whether a gain or loss has been made and whether any tax is due at the time.
For tax information and advice tailored to your specific needs please contact a member of the Tax Team on 01233 630000.