Non-residents and tax on chargeable gains from 6 April 2019—gains and UK immovable property
Non-residents and tax on chargeable gains from 6 April 2019—gains and UK immovable property

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Non-residents and tax on chargeable gains from 6 April 2019—gains and UK immovable property
  • Background
  • Basic scope of the rules
  • What is an interest in UK land?
  • Direct disposals of UK real property by non-residents
  • Indirect disposals of UK real property by non-UK resident persons
  • Indirect disposals—75% property richness test
  • Indirect disposals—trading exception
  • Indirect disposals—connected companies exception
  • Indirect disposals—25% ownership (substantial investor) test—minor interest exception
  • more

FORTHCOMING CHANGE relating to collective investment schemes: HMRC consulted from 17 September 2019 to 25 October 2019 on draft regulations that amend the rules for taxing non-residents on chargeable gains. The main effect of the amendments is to ensure that exempt investors such as pension funds will not lose the benefit of the exemption when investing in UK property-rich collective investment vehicles. This follows post-implementation discussions with industry representatives, which identified a number of areas where the new rules do not achieve their original intention. The regulations will have effect from April 2019, except certain changes affecting elections, which will apply to disposals made after the regulations come into force. For more detail see News Analysis: Proposed changes to CGT for non-residents on UK property-rich CIVs

Background

On 6 July 2018, the government published draft legislation to be included in Finance Bill 2019 (formally the Finance (No 3) Bill 2017–19, but also known as Finance Bill 2018–19) (FB 2019). The draft legislation was subject to public consultation until 31 August 2018. It was introduced in revised form to Parliament as part of FB 2019 on 7 November 2018, following Budget 2018 on 29 October 2018. Following minor amendments at committee stages, the Finance Act 2019 (FA 2019) received Royal Assent on 12 February 2019.

FA 2019 contains significant changes to