The Real Estate team take a look at the pivotal proposals announced in the UK Government’s 2017 Autumn Budget, which will see changes to the taxation of non-resident investors in UK real estate from April 2019.
In his Autumn Budget on 22 November 2017, The Chancellor of the Exchequer Phillip Hammond announced proposals to amend the rules governing the taxation of non-resident investors in UK property. The proposals include abolishing the current exemption from capital gains tax for non-resident investors from April 2019. In addition, from April 2020 non-resident corporates holding UK property will be subject to UK corporation tax on their rental income profits, rather than UK income tax as at present.
These changes represent a fundamental departure from the existing regime and investors will need to consider the commercial implications to ensure they fully understand the impact of the proposals.
The proposed changes include:
What action should investors be taking:
Please contact Andy Pyle, UK Head of Real Estate & Real Estate Transaction Services, firstname.lastname@example.org to discuss the proposed changes or implications this will have.