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ePaper created 2015-05-28, 18:34:54 | version 1.33.0
Jeremy Curtis Partner Private Wealth j.curtis@pglaw.co.uk 020 7591 3324 Laura Regan Solicitor Private Wealth l.regan@pglaw.co.uk 020 7591 3403 Until now non-UK tax residents owning property in the UK, have enjoyed fantastic capital returns pretty much free of UK taxes. However the rules have just changed and those same people now have to report and in some cases pay UK capital gains tax on such gains – all within a tight time frame. There is change for UK tax residents too. CGT main residence relief for overseas homes is now much more complicated, and won’t always apply in the way that you might have hoped. The new rules for non- residents Those who are tax resident outside the UK will now be liable to pay UK capital gains tax (CGT) on a disposal of residential property in the UK. Disposals include sales and gifts and residential property includes property bought off-plan or that you’re adapting for residential use. You will only have to pay tax on the increase in value from 6 April 2015, and there is some flexibility in the way you can calculate this to best suit your circumstances and the information you have available to you. The rate of tax depends on the size of the gain and any income you have earned in the UK in the year of the disposal. Most likely it will be 28% but there is a lower 18% rate which might apply to some or indeed all of the gain if the gain is modest. You will have an allowance - £11,100 for 2015/16 - and will be able reduce the gain with any capital losses you may CGT on homes - now a worldwide problem “The reporting of disposals for non-residents is strict: every non- resident not already completing a UK tax return must notify HMRC and pay their tax within 30 days of the disposal.” 8 pg lore summer 2015 02075913324 02075913403