6th April 2019 – Non Residents & CGT
CGT returns due within 30 days of a disposal of UK residential property by a non-resident of the UK. Any CGT due under self-assessment deadlines (but will be 30 days from 6th April 2020 onwards).
Calculating the gain? The options…
- Option to rebase the cost of the property to the market value of the property as at 6th April 2015
- Time apportion the gain for pre and post April 2015 (so only gain from 6th April 2015 onwards is chargeable)
- Calculate CGT under the normal rules using the original cost to deduct against the proceeds and any relief such as PPR/lettings relief over the total ownership period.
6th April 2019 – Two Important Changes
1. Rules extended to include the sale of non-residential (i.e. commercial) land and property in the UK by non-resident individuals, trusts and companies (prior to this these were exempt from CGT).
Calculating the gain? The options…
- Option to rebase the cost of the property to the market value of the property as at the 6th April 2019
- Time apportion the gain for pre and post April 2019
- Calculate gain using total ownership method
2. All non-UK resident persons will also be taxable on INDIRECT disposals of land. This will apply where a person makes a disposal of an entity that derives at least 75% of its gross asset value from UK land. There will be an exemption for investors who hold an interest of less than 25% in the entity.
6th April 2020 – 30 day filing and CGT payment deadline
New deadline introduced for UK resident individuals disposing of residential property from 6th April 2020
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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.