Non UK residents disposing of UK residential property: Planning

Since April 6, 2015, certain non-UK residents are now subject to the capital gains tax regime on the disposal of UK residential property.

The new rules apply to non-resident individuals, non-resident trustees, the personal representatives of non-resident deceased persons, certain non-resident companies and any of the above who are partners in a partnership or members of an limited liability partnership.

Only UK residential property is affected by the new capital gains tax charge. Commercial properties may therefore be ignored for these purposes.

Property owners will need to report a disposal of UK property to HM Revenue & Customs within 30 days of the date when the title is conveyed. As owners also need to record the disposal on an annual tax return any capital gains tax due will be payable on or before 31st January following the tax year of disposal.

If the property owner is not already within the self-assessment regime in the tax year of disposal, any capital gains tax due is payable 30 days after the sale is completed.

Property owners who are planning to dispose of a UK property and who are not in self-assessment, may wish to register for self-assessment in order to benefit from the more favourable payment date.