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June 30, 2016

Relaxation of Rules for Non-Resident CGT Returns

The Finance Bill 2016 will include legislation relaxing the rules with respect to when non-residents will be required to notify HM Revenue & Customs of disposals of UK residential property .

From 6 April 2015, non-resident individuals have been liable to capital gains tax on the disposal of UK residential property.

Normally, a non-resident must report a disposal to HMRC and pay any tax due within 30 days of completion, although where the taxpayer is already registered for self assessment, the deadline for tax owed is extended to the normal due date (i.e. 31 January following the end of the tax year in which the disposal is made).

Under the new rules, the submission of a non-resident capital gains tax return will be optional for disposals of a residential property:

  • on a no gain/no loss basis (such as between spouses/civil partners), and
  • for the grant of a lease in a bargain at arm’s length.

These changes will free some non-residents from having to complete NRCGT returns where they have no chargeable gains.

The news rules will also grant HM Treasury the power to add, amend, or remove categories of persons from the obligation to submit NRCGT returns.

Contact us today to discuss your tax requirements.
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