Carousel_Arrow Chat IHT_trust_wills IR35 Login Mobile Menu Share Share Email SubMenuMobile VAT View_Gallery View_List capital_allow Triangle 2 Copy Close construction cyberpro employment_tax_shares emplyer_solutions entrepreneurs_corps fee_protect Go grant_fund Group i_Clock i_Consult i_Done i_Eligibility_Tick i_Enter i_Filter i_HMRC i_Negative i_Play i_Plus i_Reset i_Support_Legal i_Support_TaxDesk i_Support_VAT i_Tick noun_marketing_1872083 noun_online_2126759 i_download i_meet Group Copy 24 Group 18 noun_electrical_1240755 copy noun_Technology_2125422 noun_Science_2031115 i_tick_bullet_block international_tax patent_box private_client property_sdlt r_and_d reliefs_incentives Search specialist_tax status tax_indemnity valuation
icon_cookie Created with Sketch. Cookies

We use cookies on this website. You can choose to accept them all or to opt out of some. You can change your consent at any time by opening this window again

This includes all necessary technical and session cookies, plus performance, tracking and persistent cookies.

If you choose this option, we will block all performance, targeting and persistent cookies. Many parts of this site will then not work.

Please read the full details in our Cookie Statement.
Markel Tax

29 Oct 2018

Autumn Budget 2018 – Taxation of property gains of non-UK residents

Where non-residents hold UK property other than UK residential property, then there is no UK capital gains tax on disposal of such property, unlike residential property which has been within the charge since April 2015. Also, the sale of shares in a company which are owned by non-residents do not suffer capital gains tax. Companies which own UK property, now known as property enriched entities, are currently outside the capital gains tax net.

With effect from 5 April 2019 any disposals of commercial property by a non-UK resident will be subject to capital gains tax on any gain realised by an offshore company. This will include any disposals of shares which derive at least 75% of their value from UK property. However, the computation going forward may be based on the April 2019 valuation of the relevant assets rather than their historic cost.

The net effect of these changes is to bring into charge ALL UK situs property that has previously been outside the scope of UK taxation purely because their ownership was through or by a non-UK resident person. Going forward all UK property may now be subject to the charge irrespective of who owns the property or if a company is involved.

Tagged Budget
Next article in series

29 Oct 2018

Our comprehensive Autumn Budget 2018 review