Capital gains tax charge for non-residents on property in the UK

Recently a consultation document was issued by HMRC on proposals to charge Non-resident individuals capital gains tax on residential property situated in the UK.  The consultation is open until 20 June and the results will be known shortly after.

There are lots of questions still to answered, such as at what rate will the tax be charged? Will exemptions and reliefs which are available to UK residents be available to non-residents? 

No action can be taken until the document is released and the legislation is put in place but it is proposed to instigate the tax charge with effect for 5 April 2015, so if you do own UK residential property some thoughts needs to be given to above changes.

We will continue to monitor the situation and will inform you in due course.