From April 2019, provisions in Sch 1, Finance Act 2019 will bring more disposals of interests in UK land by non-residents into charge to UK tax.

This builds on, and significantly expands, the 2015 rules that tax certain non-residents (mainly those chargeable to CGT) on sales of residential land. 

The key changes are that from 6 April 2019: 

• disposals of interests in both residential and commercial property will be within the UK’s tax base;
• persons previously able to elect out of charge (such as diversely-held companies and widely-marketed funds) will now be liable on all disposals of UK land; and
• there will be a new charge for non-residents’ gains on disposals of indirect interests in UK property (such as selling the shares in a company that derives 75% or more of its gross asset value from UK land).

The rate of CGT will be 20%. Non-resident CGT returns must be filed, and the tax paid, within 30 days of completion of the disposal. All non-resident companies (including close companies) will now pay corporation tax on their gains, and should file a company tax return in the usual way. The rules also abolish the charge to CGT on ATED-related gains. 

HMRC has published draft guidance as Appendix 14 to the Capital Gains Manual. There is also draft guidance available on the specific application of the rules to collective investment vehicles, published as Appendix 15 to the manual. 

Part 1 and Chapters 5, 6, and 7 of Part 2 of the Taxation of Chargeable Gains Act 1992 have been simplified and restated, with the new rules embedded in them.

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