Capital gains Tax
Currently non-UK companies owning UK properties are exempt from CGT on the sale of the properties. From April 2013 it is intended that the UK CGT regime will be extended to tax the gains on the disposal of residential property in the UK by non-resident, non-natural persons such as offshore companies.
1. Who will be chargeable – the same definitions of “non-natural” persons as under the SDLT regime will apply.
2. What will be chargeable – the same kind of high value properties (> £2m) that are targeted by the 7{e68217344b855fcd608ed2c4c41f83644da7cd41ea524fbfa2ad06c632d3255d} and 15{e68217344b855fcd608ed2c4c41f83644da7cd41ea524fbfa2ad06c632d3255d} SDLT rates.
3. The rate of CGT – possibly the 28{e68217344b855fcd608ed2c4c41f83644da7cd41ea524fbfa2ad06c632d3255d} rate that currently applies to individuals rather than the lower rates of corporation tax?
HMRC issued a Consultation document at the end of May but HMRC’s response to the Consultation is expected shortly.
[dlo_lcp TEXT_OPT=”EXCERPT” NUMBERPOSTS=”99″]