9 May 2014 by

To sell or not to sell; that is the (taxing) question

Non-resident property owners to become liable for UK capital gains tax from April 2015

At present, and ignoring certain anti-avoidance rules, people who are non UK resident are not liable to UK capital gains tax (CGT) on the sale of an asset situated in the UK.  This has historically made the UK property market attractive to foreign investors, particularly if CGT rates in their own country are lower than in the UK.

When the changes come in non-residents will also be subject to UK CGT, at up to 28% on the profit made on a sale.  Those profits can be significant, as anyone watching the London property market knows, and now would be a good time for non-resident property owners to consider how best to protect their investments.

A number of details of the charge have not yet been confirmed, and a consultation on the proposed changes is currently underway.  In particular, the tax rates for companies and trusts have not yet been confirmed, nor do we know whether the tax charge will apply to any rise in value after April 2015 or since the property was bought.   If the latter, non-resident owners could save a hefty tax bill by selling their current UK properties and buying replacement properties before April 2015.  This would secure the tax-free capital growth to date and ensure that CGT only applies to gains made after April 2015.

If you’re a non-resident property owner and would like advice on protecting your investment ahead of April 2015, contact Iain Aitken on 020 7288 4713 or iainaitken@boltburdon.co.uk .

25 April 2014 by

No building regulation consent? What happens next?

How do you know whether you need to obtain building regulation consent when making changes to your home? This question […]

2 May 2014 by

All will be lost, if you cannot evidence breach caused your loss

In a recently decided case the Technology and Construction Court provided a timely reminder to claimants in professional negligence actions […]

Signup To Our Weekly e-News

"*" indicates required fields

We’ll never share your details with any third party in line with our privacy policy.