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Taxing matters

03 July 2015 / Peter Vaines
Issue: 7659 / Categories: Features , Tax
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Peter Vaines explores the ins and outs of non-residents capital gains tax

We now have the non-residents capital gains tax in place and I think we can be sure it will never go away. Taxes rarely do (although I do remember development land tax being abolished in 1985).

Most non-residents who have an interest in a UK residential property will now be liable to capital gains tax on its disposal. This might catch out a few non-residents because it will also apply to disposals by way of gift and to deemed disposals. We know all about those concepts here, but they might come as a shock to some foreign owners who are unfamiliar with the principles of UK tax.

However, the tax will only be chargeable on the increase in value from 6 April 2015. This will be done either by rebasing or by an election for time apportionment. A frequent question is whether the client should obtain a professional valuation on 6 April 2015 for the purposes of the new charge.

HMRC recommend a

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