Non-resident capital gains tax (NRCGT) on UK residential property (2015–2019 rules)

Produced by Tolley

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Non-resident capital gains tax (NRCGT) on UK residential property (2015–2019 rules)
  • Summary
  • Key points
  • Chargeable persons
  • Individuals
  • Partnerships
  • What is a NRCGT 2015 disposal?
  • UK residential property interest
  • Interest in UK land
  • Dwelling
  • More...

Historically, only UK resident individuals and entities, together with temporary non-UK resident individuals and those operating via a UK permanent establishment, branch or agency, have been subject to UK capital gains tax (CGT) whilst non-UK residents have not. However, this was widened from 6 April 2013 to include disposals of UK dwellings owned by non-resident companies, partnerships and collective investment schemes where the dwelling was subject to the annual tax on enveloped dwellings (ATED) charge. For more on the ATED charge and the ATED-related CGT charge, see the Overview of the ATED regime guidance note.

From 6 April 2015, the CGT regime was extended to non-UK residents disposing of UK residential property. This is known as the non-resident capital gains tax (NRCGT) 2015 regime (also known as FA 2015 NRCGT or FA15 NRCGT).

The NRCGT 2015 regime was repealed and replaced by a new NRCGT regime with effect from 6 April 2019. This extended NRCGT to cover disposals of non-residential and mixed UK property and indirect disposals of UK land (eg disposal of shares in a property-rich company). This means that all disposals of interests in UK land by non-residents are within the scope of UK CGT. This is known as the NRCGT 2019 regime (also known as FA 2019 NRCGT or FA19 NRCGT). For more details, see the Non-resident capital gains tax (NRCGT) on UK land ― individuals guidance note.

The commentary below gives an overview of the NRCGT 2015 regime which applied between 6 April 2015 and 5 April 2015, with a focus on the application of the regime to individuals.

The NRCGT 2015 rules applied to residential property in Scotland and Wales in the same way as they applied to such property in England and Northern Ireland. It is only stamp duty land tax (SDLT) and landfill tax which have been devolved to Scotland and Wales; CGT remains reserved by the UK Parliament.

Not that the NRCGT 2015 legislation has been repealed. The legislative links to the

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