The Association of Taxation Technicians (ATT) has warned non-resident UK property owners that changes set to take effect from April will require them to pay tax on all UK land disposals, no matter whether residential or commercial.
Since 6 April 2015, non-UK residents selling a residential property have been required to file a tax return and pay any tax due within 30 days of the sale.
From 6 April 2019, these rules will be extended to cover sales of all UK land and property, both residential and commercial, as well as ‘indirect disposals’, where an individual disposes of ‘substantial interests in companies which are UK property-rich’.
Commenting on the changes, Jon Stride, Co-Chair of the ATT’s Technical Steering Group, said: ‘Any non-UK resident who owns an interest in UK land or property needs to be aware of these significant changes.
‘In particular, those looking to sell need to be aware that they will have to file a non-resident capital gains tax (CGT) return with HMRC and pay any tax due in a very short time frame.
‘Non-residents who hold UK commercial land or property should consider getting their property valued as at 6 April 2019, whether or not they anticipate a future sale. In the event of such a sale, the value at that date would be used to calculate the taxable gain.’