If you are a non-UK resident taxpayer and wondering whether or not you are required to pay CGT (Capital Gains Tax) on disposal of residential or commercial property or land owned by you in the UK, then you’ve landed at the right place as we’ve got you covered in this updated article. This article deals with changes in the CGT Regime for non-resident taxpayers.

So, without wasting a single moment, let’s answer your query. 

Changes in the CGT Regime for Non-Resident Taxpayers

Under the changes in the CGT regime introduced by the UK government back then on 6th of April-2020, you,—being a non-resident taxpayer,—are required to submit a CGT Tax Return with HM Revenue & Customs (HMRC) if you’re disposing or selling your UK commercial/residential property or interest on UK land.

Read Also: Stamp Duty Land Tax

You’ll submit CGT Return within 30 days of conveyance (completion of sale). Furthermore, it won’t matter whether you are disposing of or selling the property directly or indirectly and whether you earn a profit or make a loss on that disposal, you are still required to submit this return. 

The UK property that non-resident taxpayer may dispose or sell include:

  1. Mixed used land or property (shop and flat above)
  2. Residential land or property
  3. Non-residential land or property
  4. Right to assets getting 75{f5c46dbfd7a370437117a81398f3ac99c38e148024d17c03e20eb6cfc854a7af} of their value from UK land (indirect disposals)

A non-resident individual will pay CGT if he is a:

  1. Non-resident landlord
  2. Non-resident individual
  3. Non-resident trustee
  4. An individual representing deceased non-resident taxpayer
  5. A non-resident taxpayer who is in partnership
  6. UK resident meeting split year conditions and the disposal is made in the overseas part of the tax year.

Failing to pay CGT within a 30-day deadline will result in late-filing penalties.

Likewise, the UK government has also introduced changes in the CGT regime for UK resident taxpayers. If you want to know more about these changes, click here.

Print Friendly, PDF & Email