Do You Have Residential Property in the UK?

March 27, 2014

The Chancellor has confirmed in his Budget Report his intention, subject to consultation, is to levy 28% CGT on non-residents who own UK residential property from 6 April 2015.  The UK Budget also includes a provision amending the ATED (Annual Tax on Enveloped Dwellings) for properties held by corporate type vehicles.  The new provision indicates that residential properties, valued at greater than Stg£1 million (Stg£500,000 from 6 April 2016) will be subject to the annual charge, CGT and the higher rate of SDLT.  Currently, the ATED provisions only apply where the value of the residential property is greater than Stg£2 million.