Following the extension of HMRC’s scope in relation to Capital Gains Tax, if a property is owned by a non UK resident individual, company or trust they will be liable to NRCGT when it is sold. This is calculated on the gain arising and accruing post 6 April 2015, at a rate of 28% for Trusts and 20% for Companies. ATED related CGT has priority to NRCGT so non resident companies owning UK resident property will not be subject to both charges, however unlike ATED, the NRCGT charge has no relief for commercial letting businesses. Consequently this will result in non-resident landlords being subject to a CGT charge on the sale of investment properties. In certain very limited circumstances Private Residence Relief may be available when a beneficiary occupies a trust property as their main residence.
Mark Davies & Associates offer compliance services to help you submit the necessary forms to HMRC when you sell your property. We are also on hand to restructure your affairs if this is a cheaper option.
Contact us here for more information.