On 5 April 2019, new rules will come into play covering the imposition of UK Capital Gains Tax (CGT) on gains on direct and indirect disposals of UK commercial property by non-UK residents.

On 6 July 2018 HM Revenue & Customs and HM Treasury published an official response1 to feedback received from industry participants to their joint consultation document of 22 November 20172. This initial consultation proposed the application of CGT to non-resident's gains on UK commercial property.

1https://www.gov.uk/government/publications/capital-gains-tax-and-corporation-tax-on-uk-property-gains

2https://www.gov.uk/government/consultations/taxing-gains-made-by-non-residents-on-uk-immovable-property

These new rules could potentially impact non-resident investors investing directly and indirectly in UK real estate significantly.

There now follows a technical consultation on the draft legislation and the UK Government's further proposals. There are significant elements of the legislation to be clarified which we will follow, and update on, developments closely.

To read our latest real estate research report, that touches on changes to Capital Gains Tax, click here.

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Intertrust NV published this content on 30 July 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 30 July 2018 09:31:02 UTC