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The taxation of UK-site real estate

04/04/2019

At a glance

From April 2019, non-residents will be subject to UK tax on gains in value (post-April 2019) made on the disposal of any UK sited real estate they own.

From April 2019, non-residents will be subject to UK tax on gains in value (post April 2019) made on the disposal of any UK sited real estate they own whether:

  • the real estate is residential or commercial; and
  • the taxpayer is a corporate or an individual.

This is subject to some exemptions and special rules for collective investment vehicles.

The effect of the new rules is to draw within the scope of a charge to tax in the UK:

  • direct disposals of interests in UK real estate itself by non-UK resident individuals or corporates; and
  • indirect disposals of shares in corporate vehicles which derive at least 75% of their value from UK sited real estate and where the taxpayer disposing of the interest has, for at least two years prior to disposal, held at least 25% of the corporate vehicle.

This is a significant change for many non-UK residents and we can assist you with any queries.

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