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Non-resident UK property sales

13 June 2024

There are specials rules that apply to UK property sales by non-residents.

Special rules govern UK property sales by non-residents. From 6 April 2020, non-residents must report and pay any due non-resident Capital Gains Tax (CGT). This is a significant change that affects many non-residents. This applies if they have sold or disposed of:

  • Residential UK property or land (including any buildings on the land);
  • Non-residential UK property or land;
  • Mixed-use UK property or land; or
  • Rights to assets deriving at least 75% of their value from UK land (indirect disposals).

In April 2015, a CGT charge was introduced on the sale of UK residential property by those who are not UK residents. This was a landmark decision that had a wide impact. Tax is chargeable only on the overall gain relating to the period after 5 April 2015.

A person who is not a UK resident selling UK residential property must deliver a non-resident CGT (NRCGT) return. They must also pay any CGT within 60 days of selling a relevant property. This is a crucial step in the process. The return is mandatory, regardless of whether there is any Non-resident CGT to pay. This applies even if there is a loss on the disposal or if the taxpayer must report the disposal on their self-assessment tax return.

Penalties apply for failing to file the Non-resident CGT return within the deadline or for failing to pay any due tax on time. It’s important to be aware of these penalties to avoid any unnecessary financial burden. This highlights the importance of being timely and accurate in your tax dealings.

Source: HM Revenue & Customs Tue, 11 Jun 2024 00:00:00 +0100

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