Non-Resident Owners of UK Residential Property – No Rush for April 2015 Valuations

Many non-UK resident individual and company owners of UK residential property will be aware of the changes to Capital Gains Tax Rules from April 2015 that affect them.

After April 2015, Capital Gains Tax (CGT) will be due on disposals of such properties, but only on the post-April 2015 portion of the gain. There will be three ways of calculating the CGT, and one of those methods will involve a valuation of the property at April 2015. The owner will have the option of which method to use – whichever gives them the best result.

But, even if you will later use the re-valuation method, HM Revenue & Customs do not require you to have CGT valuations done now. An “April 2015” valuation can be carried out when the property is sold, even if that is some years after April 2015. Valuers are skilled at providing accurate values well after the period to which they relate. In fact, valuations are still carried out on properties for one of the other important dates in CGT history, March 1982.

So, if you are a non-resident individual or company owner of UK residential property then generally you do not need to rush into having an “April 2015” property valuation prepared. These rules are separate to the “ATED” rules that apply to a minority of owners – where a residential property that isn’t let or being developed for sale is owned in a company (or in a partnership with a corporate partner).

For further information please contact Rob Durrant-Walker on 01904 464100 or