SA Owners of UK Property to pay Capital Gains Tax

Recent UK tax law changes intend to levy Capital Gains Tax (CGT) at 28% on any sale of UK properties belonging to non-UK Residents and Trusts only from 5 April 2015 onwards.

British ex-pats or overseas buyers would therefore no longer be able to enjoy gains tax free investment directly into the UK property (as has been the case during the past 50 years). This change now brings the UK in line with other countries that already charge CGT on real estate owned by non-residents.

As from 1 April 2013, the UK already impose an Annual Tax on Enveloped Dwellings (ATED), effectively CGT on high-value residential property, on properties owned by  either a company or other corporate body.

The proposals on the implementation of the new rules and exemptions are expected to be issued by the UK Government in the next few months.

This article is republished with permission from Rupert Worsdale of Maitland for MoneywebTax.    

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