Tax tip: Capital gains tax and non-UK tax

Taxpayers often assume that UK capital gains tax (CGT) only applies if they are ‘UK tax resident’ and if they are non-UK resident they are outside its scope. However as with many ‘common beliefs’ with regard to tax such a belief can be dangerously wrong.

UK domestic property

Firstly it’s important for advisers to remind their private clients that the sale of UK residential property is always liable to UK CGT regardless of the taxpayer’s tax residence status. In addition non-UK residents are also caught by the non-resident CGT rules which mean that they will have to complete and submit a non-resident CGT tax return (NRCGTR) on the sale of the UK residential property. Other points to note in this regard include:

• the NRCGTR is required even if there is no actual CGT due on the sale; and
• the deadline for submitting the...