Experts warn over CGT shake-up for non-residents

Tax experts say that the way the government plans to charge capital gains tax (CGT) on UK properties sold by non-residents could make the tax system more complicated.

The proposals, on which the government consulted earlier in the summer, are designed to address the current imbalance between the treatment of UK and non-UK residents selling property in the UK.

The Chartered Institute of Taxation’s tax policy director Patrick Stevens said on 2 July: “The government are eager to ensure that the tax treatment of non-residents that own and make gains on UK residential property is comparable to that of UK residents. However, the way they are proposing to do this adds unnecessary complication to the tax system.

“The government’s proposals will overlap with current CGT rules on the selling of UK residential properties, complicating the existing CGT system further. This will be burdensome for those caught by the new charge.

“If government really wants to achieve its objectives, the way residential property is taxed in the UK should be looked at holistically rather than these piecemeal changes.”

At Robb & Co, we have particular expertise in international tax issues, including those affecting non-resident landlords, non-domiciles and expatriates and in tax planning for individuals before and after becoming resident in the UK. Issues we can advise on include:

  • the tax implications of UK property ownership
  • tax planning for people moving between jurisdictions
  • temporary relocations.

For more information about Robb & Co’s international tax services, please contact us.