Important news for UK non-resident investors – Capital Gains Tax changes
As of 6 April 2015, all UK non-residents disposing of UK residential property will be required to pay Capital Gains Tax (CGT) on any profits made. The regulation also applies to any gains made on off-plan property before completion but exclusions are made to boarding schools, nursing homes and certain types of student accommodation.
Under the new rules, individuals will be taxed at either 18% or 28% according to their tax status as a basic or higher payer.
The new legislation only apply to gains made after 6 April and will not be applied retrospectively. Individuals looking to sell property after this date will need to provide evidence to HM Customs & Revenue of the base value of the property as of 6 April 2015, in order to assess any future profit made. It is the seller alone, who is responsible for providing this evidence to HMRC.
ROC Invest recommend that investors obtain a Royal Institute of Chartered Surveyors (RICS) valuation to protect your interest. Any individuals wishing to do so should contact the team at ROC Invest and we can help to arrange this for you.