Non-resident capital gains tax (NRCGT) on UK land ― individuals

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 land ― individuals
  • Background
  • Scope of the provisions
  • Taxpayers
  • Disposals
  • Meaning of ‘an interest in UK land’
  • What is an indirect disposal of an interest in UK land?
  • Calculating NRCGT 2019 gains and losses
  • Disposal of an asset acquired on or after 6 April 2019
  • Disposal of an asset not chargeable before 6 April 2019
  • More...

Non-resident capital gains tax (NRCGT) on UK land ― individuals

Background

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, were subject to UK capital gains tax (CGT), whilst non-UK residents were 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schemes where the dwelling was subject to the annual tax on enveloped dwellings (ATED) charge, which was subsequently repealed in April 2019 due to the introduction of the regime discussed below. 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 was known as the non-resident capital gains tax (NRCGT) regime. The NRCGT regime was rewritten and extended to cover both non-residential UK property and indirect disposals of UK property with effect from 6 April 2019, meaning all disposals of interests in UK land by non-residents are within its scope. To prevent confusion, these are referred to in this guidance note as the NRCGT 2015 regime and the NRCGT 2019 regime; however, you may also see them referred to as FA 2015 NRCGT or FA15 NRCGT and FA 2019 NRCGT or FA19 NRCGT.

This guidance note discusses the NRCGT 2019 regime as it applies to individuals disposing of UK property on or after 6 April 2019. For information on the previous regime, which applied to disposals on or before 5 April 2019 (in accordance with the date of disposal which applies for CGT in TCGA 1992, s 28), see the Non-resident capital gains tax (NRCGT) on UK residential property (2015–2019 rules) guidance note.

NRCGT (both the 2015 and 2019 regimes) also apply to companies. See the Overview of the rules on disposals of interests in UK land by non-residents guidance note.

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