New rules for non UK Residents regarding CGT property disposals

capital gains tax, UK commercial property, UK residential property, HMRC

HM Revenue & Customs have extended the rules that previously applied to non UK residents in respect of UK residential property to UK commercial property also.

This change to the rules means that from April 2019 all UK property disposals made by non-resident individual, whether directly or potentially indirectly through a company or trust, require a non-resident Capital gains tax return which must be completed and submitted to HMRC within 30 days of the completion date. This deadline must be adhered to even if:-

  • You have no tax to pay
  • You’ve made a loss
  • You are registered for Self Assessment
  • You are registered with HMRC for corporation tax
  • You send HMRC Annual Tax on Enveloped Dwelling (ATED) or ATED related capital gains tax returns

Any tax due must be paid within 30 days of completion. You will be issued a late penalty and be charged interest if you miss the deadline:-

  • Up to 6 months late – penalty of £100
  • More than 6 months late – further penalty of £300 or 5% of any tax due, whichever is the greatest
  • More than 12 months, a further penalty of £300 or 5% of any tax due, whichever is the greatest

When calculating the capital gain/ (loss) on a property disposal every individual is entitled to the capital gains tax annual exemption of £12,000 for the tax year ended 5 April 2020.

If you require any assistance regarding capital gains tax for non-residents property disposals please contact us.