Capital Gains Tax

When you sell or give away your property, decide to assign an off-plan contract or transact shares in a non-UK property-rich company it necessary to file a special Non-Resident Capital Gains Tax (NRCGT) return within 30 days of the completion of the sale. For Private Individuals Capital Gains Tax is due on disposals of residential property at rates of 18% and 28% after an annual allowance on the part of the gain which has accumulated from 6th April 2015. For non-residential property and land assets and transactions in shares in non-UK property-rich companies, Capital Gains Tax is due at rates of 10% and 20% on the part of the gain which has accumulated from 6th April 2019.

We strongly recommend that all non-resident investors have their residential properties valued as at 6th April 2015 and their non-residential, land an offshore company shares in non-UK property-rich companies valued as at 6th April 2019, even if there is no intention to sell in the near term. The chances are that you will sell eventually, and a valuation will be needed then.

For Private Individuals, it is also necessary to pay any Capital Gains Tax which is due within 30 days of transaction completion date, for gains realized from 6th April 2020.

The situation for non-resident companies is a little bit different – the rate of Corporation Tax is 19% and there is no Annual Exemption. However, we may take account of the increase in the UK Consumer Prices Index when calculating the gain, which normally reduces the taxable gain by a margin. There is no obligation to report such transactions within 30 days of completion as these transactions will be reported within the Corporation Tax return for the year.