Tax Alert Friday 5th April 2019

TAX ALERT

CAPITAL GAINS TAX FOR NON-UK RESIDENTS

Non-UK Resident owners of UK property need to be aware of new changes

With effect from 6th April 2019 non-UK residents must pay tax on all UK land disposals – both residential and commercial.

They must file a non-resident capital gains tax return and pay any tax due within 30 days of sale.

NEED TO BE AWARE

All non-UK residents who own interests in UK land or property need to be aware of theses changes.  Professional advisers: Solicitors, Estate Agents and Land Agents need also need to be aware so that they can provide the necessary guidance.  KSK are able to assist with all UK tax matters relating to the disposals of property and should be your first point of call if queries arise.  Prospective sellers need to be aware that they will have to file a non-residential capital gains tax return with HM Revenue & Customs (HMRC) and pay any tax due within a very tight time frame.

PENALTY CHARGES

HMRC will seek to charge penalties for late returns and payments of tax.

COMMERCIAL PROPERTY

For disposals of commercial property, as the new rules only come into effect from 6th April 2019, it is only the growth in the property value from 6th April 2019 that will be taxable.  Non-UK resident owners of UK commercial property may wish to consider obtaining valuations at 6th April 2019 so as to accurately calculate any future capital gains tax and possibly avoid later disputes with HMRC.

NIL RETURNS ARE REQUIRED

The new legislation applies to all disposals of UK property owned by non-UK residents.  A non-resident capital gains tax return is required even where there is a capital gains tax due.  HMRC will impose penalties even for “NIL” returns.

WE ARE HERE TO HELP

Professional advisers and non-UK resident owners of UK properties who have any queries regarding the new rules can contact Paul Southward for further guidance.

Paul Southward

SUMMARIES OF ALL THE NEW TAX CHANGES

The new tax year starts on 6th April and we have reviewed the tax changes that come into effect this April and you can check these out in the downloads below..

Personal tax changes

2019-20 Personal Tax Changes

Business tax changes

2019-20 Business Tax Changes