UK property and CGT tax update

Posted on 12th March 2015 by Trevor Reynolds in Uncategorized

If you own property in the UK you need to be aware that the government has announced that Capital Gains Tax (CGT) will now be payable on UK property sold by overseas residents and offshore companies.

If you own any investment property in the UK or a principal UK residence which you may sell while living abroad, this development will affect you.

The legislation requires the payment of CGT on any gain from 6th April 2015 until the date of disposal of the property. The current CGT rate in the UK is 28% for higher rate payers. However, the CGT is due only on gains in value accrued from 6th April 2015.

In order to protect you against paying tax on gains achieved prior to the introduction of the tax, it is recommended that you to obtain a valuation on the property before 6th April 2015.

Whoever values the property will need to provide a RICS Red Book Valuation Certificate that is accepted by HMRC.

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