CGT on non-resident property owners under consultation

Following the Autumn Statement announcement, the government is now consulting until 20 June 2014 on the proposals planned to take effect from April 2015, whereby non-residents disposing of UK residential property will be subject to a CGT charge. The consultation sets out the proposed scope of the regime and likely design features, and seeks views on the approach proposed and potential impacts.

Commenting on the consultation, tax consultancy firm Gabelle said: ‘Perhaps the most surprising element revealed in the consultation document is that a charge will also apply to non-resident companies going forward. This is surprising given that it follows so swiftly after the introduction of the ATED regime, so that there will shortly be two separate regimes which could potentially apply to a non-resident company holding UK residential property. The rate of the charge on companies has not been decided yet, but it is clear that there will be different rules, exemptions and reliefs across the two regimes.’