HMRC have announced changes to both the taxation of non-residents’ capital gains on UK immovable property, and the Capital Gains Tax payment window for residential property gains for UK residents.

First and foremost, following an announcement in the Autumn Budget 2017, the government wishes to bring all gains made by non-UK residents on disposals of UK immovable property within the scope of UK tax, and be treated accordingly.

Anticipated to come into force from April 2019, the current proposal is to charge non-residents tax on gains realised from the disposal of interests in UK property, although details are yet to be finalised and exemptions will apply (for example, a trading exemption for indirect disposals.)

This change will affect any non-UK residents with gains accrued from the disposal of UK immovable property on or after April 2019.

The second change to come into force relates to the Capital Gains Tax payment window for residential property gains. Although not anticipated to take effect until April 2020, the government has confirmed it will be introducing payment on account for CGT, which will be due on disposals or residential property within 30 days of completion and will also require completion of a capital gains tax return within this 30-day window.

This brings UK residents into the same regime as non-UK residents when it comes to the disposal of UK residential property and this change will affect individuals or trustees who sell or dispose of residential property.

If you have any questions relating to either change, or have any other tax related queries, please get in touch with one of our tax experts.