From 6 April 2015 non-residents selling UK residential property will need to inform HMRC and may also have to pay Capital Gains Tax on the gains they make.
The new rules will affect:
- non-resident individuals
- non-resident trustees
- personal representatives of non-resident deceased persons
- certain non-resident companies (generally those controlled by 5 or less persons)
- some UK resident individuals disposing of UK property when abroad
- any of the above who are partners in a partnership
Only the amount of the overall gain relating to the period after 5 April 2015 is chargeable to tax.
The rate of tax is the same as for UK resident individuals and trusts (18% or 28% for individuals, 28% for trusts) as is the availability of the annual exempt amount. The CGT tax rate for non-resident Companies will be 20% and indexation allowance will be available.