The new non-UK resident tax on the sale of UK properties came into force on 6 April. The tax is only to be applied to the growth in value of a UK property from 6 April 2015 to the date of the sale of that property but we are recommending that non-resident, UK property owners obtain valuations of their UK properties now, whilst it is current.
A current valuation would mean that if you were to consider selling any of your property, we will be able to help you by giving you an indication of the tax that would be payable, based on the valuation as at 6 April 2015, and carry out some pre-sale tax planning, where possible.
Also, since HMRC will be checking the April 2015 valuation retrospectively, largely by using a computer average for the area rather than with sight of the property, and with no account therefore being taken of the fact that the properties could be in an immaculate condition, we could find ourselves in a situation where HMRC is contending a higher gain, based on a lower property valuation as at 6 April 2015.
If you have recently refurbished your property and believe it to be in an immaculate condition, a professional valuation carried out now would, I believe, reflect the immaculate condition of the property(/properties) and provide us with the substantive evidence to support a reduced capital gains tax computation. We will only have 30 days from the date of the conveyance to report the capital gain and so again, having a readily available April 2015 valuation would be useful.
UK CGT will now be payable on the disposal of the properties by non-UK resident, based on the growth in value from 6 April 2015 to the date of the sale.
The net gains, after exemptions and reliefs, will normally be liable to tax at the rate of between 18% and 28%.
If this is something we could help you with then please do get in touch. I can be contacted on firstname.lastname@example.org or on 01656 867167.