GM Tax

UK Budget 2014: Issues of Importance to Non UK Residents

A couple of items from the Budget Press Releases are worth noting by those who are living in Australia:

> Personal allowances for non-residents: “To ensure the UK personal allowance remains well targeted, the Government intends to consult on whether and how the allowance could be restricted to UK residents and those living overseas who have strong economic connections in the UK, as is the case in many other countries, including most of the EU.”

At the present time UK personal allowances are available to all UK citizens (and certain others) who are not resident in the UK.

> Capital gains tax (CGT) for non-residents with UK residential property: As announced in the December 2013 Autumn Statement, legislation is to be introduced to charge CGT on the future gains made by non-UK residents disposing of UK residential property.

A consultation on how best to produce the charge will be published shortly after the Budget. These changes will have effect from April 2015.

At the present time capital gains realised by non-UK resident individuals on the disposal of real estate in the UK are not subject to capital gains tax in the UK.

More details regarding the above proposals will be published here at GM Tax as soon as we have them.