By Christopher Williamson
The draft clauses in the UK Government’s Finance (No.3) Bill prescribe a number of significant changes to the taxation of UK real estate. The Bill is set to form the Finance Act 2019 which is due to be enacted in March 2019. The changes will principally target the ownership of commercial property and will affect individuals and companies whether they are resident in or outside the UK.
Since new rules were introduced on 6 April 2015, non-UK residents have been subject to capital gains tax (CGT) on the gains realised upon the sale of UK residential property. Gains on the disposal of commercial property have not attracted any charge. However, from 6 April 2019, non-UK residents will become subject to CGT on all UK property gains (residential and commercial).