Personal Tax

Non-resident capital gains tax (NRCGT) on UK land ― individuals ― interaction with other tax provisions

Produced by Tolley
  • 04 Jan 2022 11:12

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 ― interaction with other tax provisions
  • Non-resident capital gains tax on disposals of interests in UK land
  • Principal private residence relief
  • Split years
  • Temporary non-residence
  • Attribution of gains to UK resident shareholders of non-resident companies
  • Wasting assets
  • Capital allowances on wasting assets
  • Short leases
  • Business asset gift relief
  • More...

Non-resident capital gains tax (NRCGT) on UK land ― individuals ― interaction with other tax provisions

Non-resident capital gains tax on disposals of interests in UK land

Under the non-resident capital gains tax (NRCGT) regime, non-residents are subject to UK capital gains tax on the following disposals:

  1. direct disposals of an interest in UK land (eg the non-resident disposes of UK land that they own)

  2. indirect disposals of an interest in UK land, ie disposals of an asset that derive at least 75% of their value from UK land in which the taxpayer has a substantial indirect interest in the land (eg the non-resident disposes of shares in a company that owns UK land)

TCGA 1992, ss 1A(3)(b), (c), 2B(4)–(6)

The NRCGT rules in their present form were introduced from 6 April 2019 and may be referred to as NRCGT 2019. Other possible names for the regime are FA 2019 NRCGT or FA19 NRCGT.

For full details, see the Non-resident capital gains tax (NRCGT) on UK land ― individuals guidance note. It is recommended to read that guidance note before continuing.

This guidance note discusses how the NRCGT regime interacts with other parts of the tax code.

Principal private residence relief

Although unlikely given the need for the individual to remain non-resident, it is possible that a UK residential property could qualify for principal private residence relief (PPR relief, also known as only or main residence relief).

In order for PPR relief to be relevant, the property would have to be a ‘residence’ for the non-resident, see the Principal

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