
Peter Vaines explores the ins and outs of non-residents capital gains tax
We now have the non-residents capital gains tax in place and I think we can be sure it will never go away. Taxes rarely do (although I do remember development land tax being abolished in 1985).
Most non-residents who have an interest in a UK residential property will now be liable to capital gains tax on its disposal. This might catch out a few non-residents because it will also apply to disposals by way of gift and to deemed disposals. We know all about those concepts here, but they might come as a shock to some foreign owners who are unfamiliar with the principles of UK tax.
However, the tax will only be chargeable on the increase in value from 6 April 2015. This will be done either by rebasing or by an election for time apportionment. A frequent question is whether the client should obtain a professional valuation on 6 April 2015 for the purposes of the new charge.
HMRC recommend a professional valuation at 6 April 2015 but there are serious