How will the taxation of non-residents landlord work?

How will the taxation of non-residents landlord...

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Just trying to think ahead after the autumn statement proposal to tax non-resident landlords on capital gains.

What tax rate will apply, how will this be enforceable and any re-basing?

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By Paul Soper
12th Dec 2013 22:13

rate etc?

My guess - and we won't have the consultation until next year - is a rate of 28% - as applies to companies under the ATED regime, enforceability will be through the plethora of double tax agreements that provide for mutual assistance etc.  It might be possible to provide for a purchasor deduction at source, as with the existing anti-avoidance provisions for artificial transactions in land, but that requires a notice issued by HMRC between exchange and completion which is unlikely with residential property.  You could always exchange and complete of the same day to avoid the issue.  They could also place a charge on other UK property owned by the vendor.

Rebasing we already know - it is clear from the statement that these assets will be treated as sold and repurchased on 6 April 2015 and hence there is no need for a panic sale before that date.

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