Non Residential CGT on Sale of UK Property


From 6 April 2019
, non-UK residents disposing of UK land (or assets that derive at least 75% of its value from UK land) must file a Capital Gains Tax return within 30 days following the completion of the disposal, and a payment on account must be made at the same time.

This change means that YOU will have to be prepared to advise us to promptly calculate and report the capital gain/loss, and then you must make the necessary tax payment. 

From 6 April 2020, anyone (including UK residents) disposing of UK residential property will have to report and pay the associated tax within 30 days following the completion of the disposal but for now it is only non-residents to whom this applies.

The next natural step would be that all UK land disposals will be brought within this same regime in the future, and so extended beyond UK residential property.

While the new taxing regime is designed around the government’s desire to collect more tax from non-UK residents investing in UK land, the general theme around reporting and tax collection is a move towards expediting tax receipts from property transactions.

Therefore, with this in mind should you consider selling your UK buy to let property please keep us in the picture and be prepared to have all paperwork to hand that we would require:

  • Proof of purchase price

  • All legal fees paid on purchase and sale

  • Expenses for any capital improvements to the property in period of ownership

  • Details of sale price

This may not be foremost on your mind when dealing with the sale but from the date of conveyance the clock is ticking!

If you are currently in the process of selling, we would suggest you try and complete prior to the new legislation coming into force on the 6 April 2019 allowing you a further 9 months before filing and payment.

Any questions please contact us.