Many people may be unaware that non-residents who dispose of UK property are liable to capital gains tax, advises Mark Parnall, Director & Head of Commercial & Conveyancing at Parnalls Solicitors.
The latest rules were introduced on 6 April 2015 meaning that any type of chargeable UK asset disposed of by non-resident individuals and other entities could be liable to capital gains tax. They are most likely to have the greatest impact on small, non-resident, UK property rental and investment businesses.
The intention of the rules were to make the UK tax system fairer by addressing the imbalance that existed between the tax treatment of UK residents and non-residents disposing of UK residential property. The Government sought to minimise the impact on large-scale institutional property investors, who it saw as supporting much needed development and supply of housing in the UK.
It should be noted that this remains current law, however it is likely to change once the Finance Bill 2019, which is currently subject to confirmation in the Autumn 2018 Budget, comes into force. For more information on this issue, contact Mark Parnall on 01566 772375 or firstname.lastname@example.org