Our tax team has written a Client Alert on the extension of UK CGT to gains arising from the disposal of UK residential property after April 2015 by non-resident individuals and entities. This will extend UK CGT beyond its current scope: historically, non-UK resident individuals and companies disposing of UK property were not subject to UK CGT. This changed in April 2013 when UK CGT was extended to gains by UK resident and non-UK resident “non-natural persons” on UK residential property within the scope of the annual tax on enveloped dwellings (ATED). The new rules represent a further extension of UK CGT.
Government consultation is open until 20 June 2013 so read our detailed alert and reply to the consultation if you are concerned about the proposals which include a possible withholding tax on a disposal.