If you’re a non-dom or not resident in the UK and are making direct or indirect disposals of UK property or land, you need to tell HMRC about Capital Gains Tax.
Your resident status is based on the number of days spent in the UK during a tax year and in some ways is quite straightforward, however many of our clients are internationally fluid, moving frequently between the UK and other countries.
Non-dom tax is a complex area, particularly if you are internationally fluid, and it is important to seek advice around Capital Gains Tax because you must now report and pay within just 30 days of completion of conveyance.
At Sestini & Co we will work with you and complete the Non-Resident Capital Gains Tax return required by HMRC.
Wider scope of CGT now applies
From 6 April 2020 there has been a requirement to report and pay your non-resident Capital Gains Tax using the HMRC Capital Gains Tax on UK property service if you’ve sold or disposed of:
- Residential UK property or land (land for these purposes also includes any buildings on the land)
- Non-residential UK property or land
- Mixed use UK property or land (such as one that has residential and non-residential elements
- Rights to assets that derive at least 75% of their value from UK land (indirect disposals).
Until April 2019 the requirement for non-residents was limited to Capital Gains Tax relating to direct disposals of residential property only. However, now the additional three categories above, plus residential land, are included.
Whether you’re looking for a rental investment or a new home, buying and selling property is a daunting task, even more so when you’re doing it from another country and need to consider your long-term plans.
UK non-resident Capital Gains Tax is payable by:
- Non-resident individuals
- Personal representatives of a non-resident who has died
- Non-resident who is in a partnership
- Non-resident landlord
- Non-resident trustee
- UK residents meeting split year conditions are also eligible to pay if the disposal is made in the overseas part of the tax year
UK residents also need to file a CGT return within 30 days when they sell a property, and this isn’t something where domicile is a factor.
At Sestini & Co we are also able to give tax advice for non-resident companies and from 6th April 2019, they have had to include the sale of UK property in their Corporation Tax instead of Capital Gains Tax.
Contact us: specialists in expat tax
Managing Director of Sestini & Co, Rachel Sestini, recently took part in an expert panel to on the UK property market for non-residents, including how to navigate tax obligations, explore ways to purchase using funds from New Zealand and other implications for kiwis living in the UK managing properties.
Rachel has 30 years’ experience of advising expats and multinational companies on international filing requirements and now works alongside boutique tax advisers around the world to provide a joined-up tax planning and compliance service. Key jurisdictions Sestini & Co works with include the US, Canada, Australia, New Zealand, South Africa and a number of countries across Europe.
If you’d like to chat to us about your business or personal affairs, please give us a call on 01761 241 861 or email us today. We will be pleased to arrange an online consultation or telephone call.