From April 2015, capital gains tax (CGT) will be imposed on gains made by non-residents who sell residential property in the UK.
The finer details of these new rules remain to be seen and the consultation process will start early next year. The announcement comes shortly after the introduction of the Annual Tax on Enveloped Dwellings (ATED) charge and corresponding CGT charge on companies (and other entities) holding UK residential property worth more than £2 million. The latter rules included provisions for rebasing properties and perhaps created an expectation that this time around there will also be an option to rebase.
For more information or to discuss the changes contact the TaxDesk on 0845 4900 509 and ask for Priya Dutta.