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.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Macfarlanes

View more briefings from Macfarlanes

Analysis from The Lawyer

View more analysis from The Lawyer

Browse This Firm’s


20 Cursitor St

Turnover (£m): 139.75
No. of lawyers: 260