HMT-HMRC Consultation outcome: Taxing gains made by non-residents on UK immovable property
Released 6 July 2018
HM Treasury and HMRC have published responses to the consultation on the tax treatment of gains on disposals of UK immovable property by non-residents.
On 22 November 2017 the Government released a consultation document seeking views on proposed rules to expand the UK’s tax base with respect to non-UK residents’ gains on disposals of interests in UK immovable property. Only those persons who are currently not liable to UK tax on capital gains, for reasons other than being non-UK resident, would be outside of the charge. Draft legislation for the core provisions has been published which integrates the core mechanics of the changes this measure brings with a consolidation re-write of the Taxation of Chargeable Gains Act 1992, Pt. 1. Aside from the changes for this measure, the changes to Pt. 1 only re-state the current rules without altering how they work. The Government recognises the complexity of these rules, and the scale of the changes proposed and there will be a period of further technical consultations on the legislation and proposals. The changes will be finalised for Budget 2018 and come into effect from April 2019.