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UK residential property and non-residents

Yes, I know it isn't the snappiest of headings but if you're non-resident and own residential property in the UK it's important to know about a capital gains tax charge when you sell that property. This was introduced in the Finance Act 2015 and took effect from 6 April 2015.

Leaving aside any claim for private residence relief, if capital gains tax is payable on the sale of the property the tax is payable within 30 days of the property being conveyed, unless you have a current Self Assessment record with HM Revenue & Customs (HMRC) when payment will be at the normal due date for the tax year in which the disposal is made.

There is, however, a catch (as always) and I can't help thinking it's yet another way to raise extra money for the government. Whether you are registered with HMRC for UK tax through Self Assessment or not, you must report each property you dispose of after 5 April 2015 separately to HMRC. You do that using HMRC's online form which is on HMRC's website. Late submission will result in penalties.

Solicitors don't seem to have caught up with the change in the law yet so be careful you don't fall foul of yet another penalty.


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