Further to a number
of enquiries from our landlords regarding the introduction of the New
Capital Gains Tax for Non UK Resident Landlords, we have researched this in
depth and we have found the following salient points and a useful government
link which you may find useful.
The new Capital Gains
Tax came into force on the 6th April 2015. Any sales of UK
residential property made before that date, whether of a main residence or an
investment home, owned directly by non-resident individuals should not incur a
tax charge. However, from 6th April 2015, a charge to CGT will
arise on non-UK residents who dispose of UK residential property. The charge
will only be applicable to gains accruing after 6th April 2015.
To summarise capital gains will apply: To non-UK resident individuals,
trustees, certain closely-held fund structures and companies on the disposal of UK residential property, including
rental properties, and Capital gains
tax will be charged on the increase in value of the property from 6th
April 2015 onwards. Capital Gains Tax rates of 18% and 28% apply dependent your
circumstances.
The general advice seems to be that Non-UK residents should get their
properties valued now, even if they have no intention of selling. Failing to
get a valuation could possibly mean paying more tax when the property is
eventually sold.
If you do sell in the future, HMRC may query the amount of tax due on a
sale and they will refer the matter to their
District Valuer who will then determine the value as of the 6th of
April this year. The landlord can of course employ a surveyor at that
point to do the same and they will negotiate with the District
Valuer. This would obviously cost more than getting your property valued
now.
For further information please view the following link https://www.gov.uk/capital-gains-tax-for-non-residents-uk-residential-property#
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