30 SECOND TAX SPEED READ - NON-RESIDENT CGT CHANGES EFFECTIVE FROM 6TH APRIL 2019
As of 6thApril 2019, the UK Capital Gains Tax regime has been extended for non-residents to include the sale of UK commercial property. The change applies to both the direct disposal of commercial property and to indirect disposal.
An indirect disposal happens when shares in a company that derives more than 75% of its value from UK land, are sold by a seller that has held more than a 25% interest in the company for 2 years prior to disposal.
Rates of CGT for Commercial Property are:
- Higher rate tax payers = 20%
- Basic rate tax payers = 10%
- 19% Corporation tax (dropping to 17% from April 2020)
Effective from 6thApril 2019.
Advise Non-resident clients of the changes.