Direct disposals of interests in UK land by non-residents

Produced by Tolley in association with of Crane Dale Tax, part of AMS Group

Corporation Tax

Guidance

This guidance note considers the taxation of direct disposals of interests in UK land by non-resident persons, with a focus on the rules as they apply to non-resident companies.

Prior to 6 April 2019, only gains on direct disposals by non-resident persons of UK residential property interests were potentially subject to UK tax. This would have been the case where the capital disposal was annual tax on enveloped dwellings (ATED) related or was caught by the FA 2015 non-resident CGT (NRCGT) rules (referred to in this guidance note as the ‘NRCGT 2015 regime’). See the Overview of the ATED regime guidance note. See CG73700C for details of the NRCGT 2015 regime. In both cases, the gains were subject to CGT, either at 20%, if caught by the NRCGT 2015 rules, or 28%, if ATED-related. The normal rule charging companies’ capital gains to corporation tax did not apply.

However, as a result of legislation introduced in FA 2019, Sch 1, all types of direct

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Rob Durrant-Walker

Tax Director at Crane Dale Tax , Corporate Tax, OMB, Personal Tax

Rob is a cross-tax advisor with a particular focus on property tax planning, and business structure planning for OMB’s. He provides tax advice to other accounting firms, balancing commerciality, ethics, and understanding complexity. His 30+ years of experience start at the Inland Revenue in Hull. After completing his ATT and CTA by 1999 with PKF, he subsequently worked at KPMG and UHY prior to managing the business tax team as a director at Garbutt + Elliott. Rob is now Tax Director at the independent tax consultancy, Crane Dale Tax. He is a regular author for Taxation magazine with many articles and Readers Forum contributions since 2005, and he contributes as a virtual member to the CIOT Property Tax technical committee. Rob works remotely from Vancouver in Canada.

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