HMRC’s consultation on implementing a capital gains tax charge on non-residents disposing of UK residential property
The chancellor announced in the 2013 Autumn Statement that capital gains tax (CGT) on the disposal of UK residential property would be extended to non-UK residents. As things currently stand, non-residents are outside the scope of CGT altogether, subject to certain anti-avoidance provisions, for example where an individual is non-resident for fewer than five years. The extension of CGT to non-residents is therefore a significant change to the UK tax system, although as the consultation document makes clear, it will in fact bring the UK into line with the rest of the countries in the G8 and other comparable jurisdictions.
The proposed extension of the CGT rules follows hot on the heels of the regime introduced with effect from April 2013 that imposes an annual tax on certain residential properties owned by companies (and other legal entities) and a CGT charge at 28 per cent on disposal of such properties (known as the ‘ATED-related CGT charge’) even where the company that owns the property is non-resident. This ATED regime is being extended over the course of the next two years to properties worth between £1m and £2m on 1 April 2015 (from 6 April 2015) and between £500,000 and £1m on 1 April 2016 (from 6 April 2016). Taken together, these various measures highlight the importance of UK real estate to the UK government as a taxable asset class…
Click on the link below to read the rest of the Macfarlanes briefing.
News from The Lawyer
Briefings from Macfarlanes
M&A Weekly Update: forced sale of shares does not qualify as ‘an offer to the public’ requiring publication of prospectus; and more
Macfarlanes has released its M&A Weekly Update for the period 27 June to 3 July 2014.
Investment Management Update — 4 July 2014: FCA Handbook Notice 13; ESMA updates Q&As on AIFMD; and more
Macfarlanes has released the 4 July 2014 issue of its Investment Management Update.
Analysis from The Lawyer
As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014.
Footie and telecoms dominate our regular round-up of recent M&A activity, as the threat of rising interest rates kick-started activity among organisations.