2013 Budget Update

As widely anticipated, George Osborne has cast the net of Capital Gains Tax (CGT) wider than ever before and has announced plans to tax future capital gains arising from the disposal of UK residential property by non residents.

In 2013 non resident companies that owned property worth more than £2 million would be subject to CGT on any gains, however, non resident individuals remained unaffected.  The Chancellor's announcement indicates that non residents will be subject to CGT on the disposal of UK residential property in the same way that UK residents pay CGT on their second homes.  The new CGT would be introduced in April 2015 and would only impact future gains arising after that date.