UK extends Capital Gains Tax for non-residents
Published 23 November 2017
In his Budget speech on Wednesday 22nd November the Chancellor announced that all disposals of UK assets by non-residents will be subject to Capital Gains Tax with effect from 5th April 2019.
Up to 5th April 2015 gains arising on disposals of UK assets by non-residents were outside the scope of UK tax.
From 5th April 2015 gains accruing after that date made by non-residents on the disposal of residential property have been subject to Capital Gains Tax.
Student accommodation generally does not count as residential accommodation.
With effect from 5th April 2019 gains accruing after that date on disposals of other assets by non-residents will also be subject to Capital Gains Tax.
John has been resident outside the UK for more than five full UK tax years. On 6th April 2020 he sells an apartment and a student accommodation unit. The apartment sells for £400,000 and the student accommodation unit sells for £200,000. He bought both in April 2014 for £200,000 and £100,000 respectively. The value of the apartment at 5th April 2015 was £300,000 and the value of the student accommodation on 5th April 2019 was £175,000.
The taxable gain in 2020-21 will be £100,000 (appartment ) +£25,000 student accommodation.