Where non-residents hold UK property other than UK residential property, then there is no UK capital gains tax on disposal of such property, unlike residential property which has been within the charge since April 2015. Also, the sale of shares in a company which are owned by non-residents do not suffer capital gains tax. Companies which own UK property, now known as property enriched entities, are currently outside the capital gains tax net.
With effect from 5 April 2019 any disposals of commercial property by a non-UK resident will be subject to capital gains tax on any gain realised by an offshore company. This will include any disposals of shares which derive at least 75% of their value from UK property. However, the computation going forward may be based on the April 2019 valuation of the relevant assets rather than their historic cost.
The net effect of these changes is to bring into charge ALL UK situs property that has previously been outside the scope of UK taxation purely because their ownership was through or by a non-UK resident person. Going forward all UK property may now be subject to the charge irrespective of who owns the property or if a company is involved.