Changes to Capital Gains Tax on Residential Properties
Since 1982 Capital Gains has been charged on gains enjoyed by all UK residents on the sale or transfer of all residential properties not occupied as the owner’s principal residence at a rate of 18% for basic rate tax payers and 28% for those paying tax at higher rates. Until this year though Capital Gains on the transfer of a residential property only applied to UK residents and non-UK residents selling a second home or an investment property in the UK were exempt.
New rules now mean that as of 6th April 2015 non-UK resident individuals, trustees, fund structures and companies will have to pay Capital Gains Tax on the disposal or transfer of UK residential property, including rental properties, on any gain due to an increase in value of their property from 6th April 2015 onwards.
Many non-UK residents have owned properties in the UK for many years and will want to be sure that any increase in value enjoyed before 6th April 2015 can be differentiated from increases enjoyed post 6th April 2015 as the latter will attract Capital Gains Taxation and the former will not.
Now is the time to have your property valued if you are a non–dom UK property owner to avoid uncertainty in future years. Many non UK residents with properties in the UK are arranging for them to be valued whilst 6th April 2015 values are still easily assessed.
Flick & Son provide a Chartered Valuation Surveyor service for the formal valuation of residential property for capital taxation purposes, whether for CGT or IHT so if you are affected by this change in the Capital Gains Tax legislation or indeed if you require a valuation for any Capital Taxation purpose please contact Peter Watson FRICS, an RICS Registered Valuer, on 01728 452469.
To see our latest properties please visit www.flickandson.co.uk