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Corporate Services Blog

UK Capital Gains for Non-Residents

08/08/2014

Even if you are not a UK resident you may still have to pay UK Capital Gains Tax.  In general you may not be liable for this, but there are some exceptions.  This capital gains tax however may be avoided where there is a double taxation agreement between the UK and your country of residence.

Factors that have to be taken into account when looking at whether you pay Capital Gains Tax on UK assets are;
- If you have previously been resident in the UK
- If so when you left the UK, how long you were resident in the UK and how long you have not been resident in the UK
- Whether the assets are held for the purpose of carrying out work through a UK branch or agency

In March of this year the HM Treasury and HM Revenue and Customs have produced a consultation regarding the extension of Capital Gains Tax on UK residential property to non-residents.  There are proposed exclusions for institutions that provide accommodation for children, students, nursing care or similar establishments.  The current proposal is that following the disposal of a property that a non-resident will have 30 days to submit a form which will provide them with three options.

- Make a payment on account
- Submit a computation of the actual amount due
- State that they will report the gain on their next tax return

If selecting either of the first two options payment will be due within 30 days. 
Currently proposals for the rules for properties held by a corporate body differ depending on the value of the property.

Any new legislation on this matter is not expected to take effect till at least 6 April 2015.

Chesterfield are highly experienced when it comes to handling UK property and if you currently hold property in the UK whether individually or through a corporate body or are thinking of purchasing property and would like to learn more about how the new rules may affect you then please feel free to contact us by following the link below or call us on our offices Telephone Number: 44 20 7097 1385 Contact Us




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