Changes came into effect from 6th April 2015 which meant that non-resident individuals disposing of residential property in the UK would now be required to pay UK CGT on any taxable gain arising from the sale. This measure was extended to non-resident persons disposing of commercial property from 6th April 2019.
In calculating the gain, there are three options:
- Rebase the gain and take the market value at 6th April 2015 to use as the cost (replacing the original and possibly lower acquisition cost)
- Splitting the gain from 6th April 2015/19 and taking the pre and post relevant periods and taxing the gain arising from 6th April 2015/19 only
- Calculating the gain under standard CGT rules, using total proceeds received less any reliefs and the original cost.
A worked example comparing the options
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This tax article was published in July 2019 – please be aware that the information above may have changed in subsequent months. This note is written for the general interest of our clients and is not a substitute for consulting the relevant legislation or for taking professional advice.