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Fall in the rate of CGT: Non-UK residential property

It is good news that the top rate of Capital Gains Tax (CGT) was reduced from 28% to 20% with the basic rate falling from 18% to 10% on disposals made on or after 6 April 2016.  However, the reduced rates do not apply to gains realised on residential property (that do not qualify for private residence relief). 

Don’t forget that unusually this is not limited to UK residential property but it is extended to include non-UK residential property as well.  Therefore, any gain realised on residential property anywhere in the world will continue to suffer the higher rates of CGT (a basic rate of 18% and a top rate of 28%). 

If, however, you are not domiciled in the UK, any gain realised on the disposal of non-UK property will be protected from UK CGT providing you claim the remittance basis in the year of disposal and the sale proceeds are not remitted to the UK.



Date: 29th April, 2016
Author: Alice Pearson


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