AS2013: Foreign property owners to pay CGT from April 2015

The Government has confirmed it will introduce capital gains tax for foreign property owners.

Delivering the Autumn Statement today, Chancellor George Osborne said foreign investors who do not reside in the UK will have to pay CGT on future gains on UK residential properties from April 2015.

The current rates for capital gains tax are 18 per cent or 28 per cent, depending on your income tax rate, with the tax levied on profits made when reselling all but your main residence. 

Osborne said: “Britain is an open country that welcomes investment from all over the world, including investment in residential property. But it is not right that those who live in this country pay capital gains tax when they sell a home that is not their main residence, but those who don’t live here do not.

“That is unfair, so from April 2015 we will introduce capital gains tax on future gains made by non-residents who sell residential property here in the UK.”

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  • PP 5th December 2013 at 2:48 pm

    How does this work for former UK residents who let their PPR when they went to work abroad and then may decide to sell their home if they decide to stay permanently in their new country – I’ve clients in Australia and Japan who have let out their homes in case they were to return. Should they sell pre April 2015?

    If the CGT will apply to them, what will the acquisition cost be? Same as UK LTB when someone lets their former home, say moves in with new partner to a new PPR but still gets the initial PPR exemptions on their former property?