Oddly, those landlords who are non UK resident have not had to pay Capital Gains Tax (CGT) when selling their UK investment property. The government have however confirmed that this perk, or perhaps oversight, is to be abolished from April 2015.
But this “levelling of the playing field” between ...more ...
Oddly, those landlords who are non UK resident have not had to pay Capital Gains Tax (CGT) when selling their UK investment property. The government have however confirmed that this perk, or perhaps oversight, is to be abolished from April 2015.
But this “levelling of the playing field” between those who are and are not UK resident is more a moving towards level not exactly achieving it just yet. This is because the non resident landlord will only pay CGT on gains since 5th April 2015, not from when the property was purchased. A subtle difference, but an important one.
CGT is currently 18% or 28% for individuals, depending on the person’s total income and chargeable gains. An annual exemption is available. For companies the rate is 20% with indexation relief, so some may look to change how they own property in the future.
Consequently, many non resident buy to let investors have requested an RICS Red Book valuation report for that date, to demonstrate to HMRC at some future point the limit of their capital gain. With six RICS Registered Valuers in our team of Chartered Surveyors, Woodward Chartered Surveyors have already started work on portfolio buy to let valuations, including property in Harrow, Pinner, Ealing and Docklands in London. If you would like to know more, please contact Elaine or Lyndsay via our Contact Us page.
"Although housing has climbed the policy agenda, with supply issues dominating the private housing market, our forecast suggests that the likely increase in prices in 2016 will outstrip any rise in household income." Read the full story:
When it comes to auspicious dates, 5th April 2015 is certainly one for all who represent Non UK Resident Landlords.
From 5th April 2015 all Non UK Resident Landlords become liable for Capital Gains Tax (CGT). However, the good news is that the “Gain”, calculated only when the property is sold, is only taken from the value as at 5th April 2015.
For this reason many Non UK Resident Landlords are requesting a special CGT Valuation by registered Valuers of the Royal Institution of Chartered Surveyors (RICS), in accordance with the RICS guidance manual, the “Red Book”...... more .......
