Posted by Simon Griffiths on 03 Apr 2014
Non-UK Residents and UK Property Tax
HMRC has published a consultation on the proposal that Capital Gains Tax will apply to non-residents for UK residential properties. It is proposed that these rules will come into play from April 2015. The consultation period is open until 20 June 2014.
Whilst the main proposal to tax non-residents on UK residential property has been widely discussed and, accepted that some form of taxation will be introduced, there is a second part to the consultation affecting UK tax residents.
Principal Private Residence Exemption
It is proposed to change the manner in which an individual can decide which property if they own more than one, will actually be the main residence and so benefit from the Principal Private Residence Exemption. It appears that the proposal would be that the individual would need to demonstrate which property has been the main residence in which they have lived and making a simple election would not be sufficient.
This wide-ranging proposal could affect those with property close to where they work and a weekend home where, in the past, it has been possible to elect for one of the properties to be the main residence. It appears now that doubt is being brought into the equation by bringing a more subjective element as to which property is the “main residence”.
Contact Tax Innovations about Capital Gains Tax Changes
We will provide more news on this following the closing of the consultation period. If there are any particular comments that clients or contacts feel they would like to express on this measure, please let us know and we will pass those via our Institute to HMRC.
If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or email@example.com
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