Published 10th May 2022
Are you a non-resident owning property in the UK? Be aware of your obligations when you sell
We have all become used to the idea that since April 2015 non-residents could be liable to Capital Gains Tax (CGT) on the disposal of UK residential property and the same applies to the disposal of purpose-built student accommodation and other non-residential property since April 2019.
In each case it is the gain in value since those dates (or the date of acquisition, if later) that is taxed subject to a limited number of reliefs and allowances.
Beware of the Capital Gains trap for non-residents when you sell your UK property even if it’s kept for the use of the family and not let…
This idea is very easy to apply to UK rental property owned by non-residents. What some have not realised is that it also applies to the disposal of any other UK land or buildings even if they are kept for the use of the family and are not let out. Most non-residents will not qualify for the Private Residence Relief (PRR).
Please do not forget that any disposal of UK land or buildings (residential and non-residential) and the calculation of any gain or loss must be submitted to HMRC within 60 days of completion of the sale. The submission must be made on-line using a new CGT account. Please let us know as early as possible when you have a sale in progress.
Beware of the Capital Gains trap for non-residents when you sell your UK property even if it’s kept for the use of the family and not let…
Please do not forget that any disposal of UK land or buildings (residential and non-residential) and the calculation of any gain or loss must be submitted to HMRC within 60 days of completion of the sale. The submission must be made on-line using a new CGT account. Please let us know as early as possible when you have a sale in progress.
For help with this or any other taxation matter, get in touch
The information contained in this article is believed to be correct at the time of publication. The content of this article is intended to be a brief summary of the principal points of the legislation or proposed legislation only, and it is provided for general guidance only. It may not take into account subsequent changes in the law and of necessity it omits much detail. Taxation is a complicated subject and is subject to change. You should only rely on advice prepared specifically for you. Neither the writer nor Landlords Tax Services Ltd can be held liable for any loss arising from any act or omission by you as a result of your understanding of this article. If the subject matter is of interest you should contact us to see if there is a relevant update, and to take professional advice which takes into account your circumstances.