A UK non-resident that sells UK residential property needs to deliver a non-resident CGT (NRCGT) return within 30 days of selling a relevant property. The return must be made whether or not there is any NRCGT to be paid and even if there is a loss on the disposal, and even where the taxpayer is due to report the disposal on their own personal or Corporation Tax Self Assessment tax return.
The NRCGT charge is applied at different rates according to whether the seller is a non-resident individual, personal representative, trustee closely-held company or fund. The NRCGT applies to gains made in the period from the time the NRCGT was introduced on 6 April 2015 to the disposal date of the property. Any NRCGT that is due must also be paid within 30 days of the conveyance date. If the taxpayer is registered for UK tax they can opt to pay the NRCGT due when they submit their regular Self Assessment return.
HMRC is seeing many cases where it is mistakenly claimed that an NRCGT return need not be delivered based on the CGT ‘no gain/no loss provisions’ such as a disposal to a spouse. In many cases this is incorrect and care should be taken to ensure that returns are delivered on time. There are penalties for failing to file the NRCGT return within the deadline and also for failing to pay the tax on time.