Non UK residents will have to pay capital gains tax (CGT) on residential property sales in the UK from April 2015, reversing the current rule, George Osbourne announced in his Autumn Statement yesterday.
The Chancellor said that although the UK welcomes investment from all over the world, it was unfair that UK residents pay CGT when they sell a home that is NOT their primary residence, while non residents did not.
Full details on the introduction of the charge will be published in 2014.
If you are a Non UK resident, and the owner of a UK home and considering selling the property, it would be advisable to do so before the Capital gains tax introduction comes into force in 2015.
As an example, if you bought a house in 1980 for £40,000
Its sale value after April 2015 is £200,000,
then your possible Capital Gains tax charge (depending on the rate at which CGT is charged, but lets assume 20% for sake of this example), could be as high as £32000 (not including any allowances that might be taken into account).
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