CGT and Non-Residents Selling UK Residential Property
Much has been made of the Government’s consultation on the introduction of a Capital Gains Tax charge for non-residents selling UK residential property after April 2015. The consultation period has now ended. Whilst there has not yet been a full official response, there are one or two useful pieces of information that have become apparent.
Whilst the original consultation document did not make mention of the charge only applying to capital gains arising after April 2015 onward, meeting notes from the Expatriate Forum clearly state that it is not HMRC’s intention to tax gains made up to April 2015. Therefore there will be a form of rebasing within the final detail, but the actual method to achieve this has not yet been clarified.
One area that has caused much concern is the fact that the scope of the consultation also appears to cover an individual’s ability (whether they are UK resident or not) to elect for a property to be considered their main residence. The document suggested two possible methods, meaning either the individual would have to demonstrate that the property in question was, as a matter of fact, their main residence or the introduction of a fixed rule which would determine the main residence.
A full response is likely to be produced in early December, shortly after the autumn statement. Those with property in the UK who will be affected by such changes would be well advised to monitor the changes and take professional advice once more is known.
If you would like to be specifically kept up to date with further changes please contact us.