Malcolm Finney looks at compliance responsibilities of non-UK residents on disposing of UK land and buildings.
From 6 April 2015, non-UK residents became subject to capital gains tax (CGT) on disposals of residential property situated in the UK. This charge was extended, effective for disposals made on or after 6 April 2019, to both direct and indirect disposals of interests in UK land (land includes buildings and structures whether residential or otherwise, e.g., commercial).
An indirect disposal is a disposal of a 25% (or more) shareholding interest in a company where 75% of its gross assets are attributable to UK land and buildings (TCGA 1992, Sch 1A).
Rates of CGT
Disposals include, for example, actual sales, outright gifts and gifts into trust with applicable rates for individuals of 18% and/or 28% or 10% and/or 20% with respect to disposals of
