This document discusses key points on the rules, chargeable persons, meaning of NRCGT disposal, methods of calculating the gains and losses and compliance matters.

Historically only UK resident individuals and entities, together with temporary non-UK resident individuals and those operating via a UK permanent establishment, branch or agency, have been subject to UK capital gains tax (CGT) whilst non-UK residents have not. However, this was widened from 6 April 2013 to include disposals of UK dwellings owned by non-resident companies, partnerships and collective investment schemes where the dwelling was subject to the annual tax on enveloped dwellings (ATED) charge. For more on the ATED charge and the ATED-related CGT charge, see Simon's Taxes Division B6.7 and C2.1125 (subscription sensitive).

From 6 April 2015, the CGT regime was extended to non-UK residents disposing of UK residential property.

The regime is expected to be further extended to cover non-residential UK property with effect from 6 April 2019 (1 April 2019 for companies), meaning all disposals of interests in UK land by non-residents will then be within its scope. See the Autumn Budget 2017 - overview for individuals news item ('Non-resident capital gains tax on non-residential property'). Autumn Budget 2017: Overview of tax legislation and rates, para 2.35

This guidance note gives an overview of the rules on UK residential property with a focus on the application to individuals.

Note that the rules also apply to land in Scotland. It is only stamp duty land tax (SDLT) and landfill tax which have been devolved to Scotland from 1 April 2015; CGT remains reserved by the UK Parliament.

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