Since 6 April 2015 any disposal of UK residential property falls within the UK tax regime. There is now an additional reporting requirement for all non-resident owners who sell any UK residential property after this date. The legislation states that a non-resident capital gains tax return must be submitted to HMRC within 30 days of conveyance of each property even if there is no tax to pay or a loss was made. It is possible to defer the payment of any capital gains tax until the submission of the annual tax return otherwise payment must also be made within this 30 day period.
Even though this requirement has been in place for a while, we are seeing regular cases of it slipping through the cracks either because parties are ignorant of the obligation or think that somebody else is dealing with it. This is potentially a very costly mistake as a result of how late filing penalties are calculated being:
For example, if a company sold three properties in July 2015 at a loss but did not file any non-resident capital gains tax returns to HMRC until September 2016 this could give rise to penalties of over £4,500 even though no tax is payable.
Solicitors have made it clear that the completion of these forms does not fall within their remit. The onus is therefore on the non-resident individuals or fiduciaries to pass on the relevant information to their accountants or tax advisers in a timely manner so that these unnecessary penalties can be avoided.
You can use this form to request us to give you a call or if you prefer just leave us a message. Please be sure to leave us a contact number or email address for you and we will get back to you as soon as we can.