What the Autumn Statement holds in store for non-resident property owners

11 December 2013

3 December 2013

UK news

From 1 April this year, the UK government introduced the Annual Tax on Enveloped Dwellings (ATED).

This is a charge on high value UK residential properties – worth more than £2million – owned by companies, collective investment schemes and certain partnerships primarily set up to avoid stamp duty land tax.

At the same time, these entities, even if based abroad, became liable to UK capital gains tax at 28% on the sale of such properties.

Press reports indicate that the coalition government remains concerned about residential properties in central London being acquired by non-residents and then being rarely occupied, thus fuelling a property bubble.

It is therefore suggested that the Chancellor of the Exchequer’s Autumn Statement on 5 December may extend UK capital gains tax to high value residential property owned by foreign individuals. Quite how this could be enforced remains to be seen.

If you need any assistance in completing ATED or UK capital gains tax returns click here.

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