Fears Subside Over Non-Resident Property CGT
FEARS that non-resident individuals owning UK property will be caught by the government's Budget proposal to extend the CGT regime, have proved unfounded.
Marios Gregori, tax partner at PKF, confirmed that UK residential property owned within an offshore company or a trust will fall under the extended CGT regime, whereas non-resident individuals disposing of UK residential property without such a structure in place would not be affected. ‘The government is trying to catch those looking to avoid tax by acquiring UK property through a corporate vehicle - it's an anti-avoidance measure,' he said.
The chancellor announced yesterday their plans to extend the capital gains tax regime to the disposal of UK residential property held in non-resident corporate vehicles from April 2013, following consultation.
John Whiting, tax policy director at the CIoT, said: ‘The targeting of "non-natural persons" for both SDLT and CGT additional charges is an understandable attempt to catch all manner of vehicles but the legislation will need careful drafting to make sure the measures are practical and workable.'