· Trustees / personal representative of a non-resident individual
· Some unit trusts
· Close companies with 5 or less participants The charge applies to buildings that are being used , or are under construction or adaption into a dwelling . It also catches the situation where there is a disposal of a right or option to acquire an interest in the specified property .
Do not confuse this with ATED * -related CGT where there is a £ 500,000 minimum threshold : for this charge there is no minimum value , and it also applies to dwellings that you let out on a commercial basis .
(* ATED : Annual Tax on Enveloped Dwellings ) The introduction date of April 6th , 2015 also acts as the baseline for assessing the gain , by comparison with the value realised on the disposal date . Overseas companies do get indexation , but none of the reliefs available to resident companies under ATED . Some ( rather limited ) private residence relief is offered . The seller can elect to calculate the gain either using :
· straight-line apportionment from the purchase date ;
· or for the entire gain since April 6th 2015 or the later date of purchase .
4 . File and Pay On Time Very short deadlines have been imposed for filing and paying NRCGT .
You must file a return for each sale of a residential property within 30 days , regardless of whether it actually falls out with the NRCGT rules and is to be dealt with under ATED or actually shows no capital gain .
Unless you make self-assessment returns , which then qualifies you for dealing with tax payment on your standard due date , you also have to abide by a 30-day deadline for payment ( measured from the conveyance date ).
5 . Land Taxes Trading in and developing land used to be an attractive activity for overseas development companies because unless they had an operation registered in the UK or they funnelled income through the UK they could take advantage of double taxation agreements to avoid paying UK taxes on their profits .
Many firms registered in the Isle of Man , Jersey or Guernsey as a result . But with effect from March 16th , 2016 , revised double taxation treaties with these jurisdictions result in the payment of UK tax on UK land transaction profits by the offshore firms or individuals .
The UK Government has since extended the same treatment to developers that are registered in any other country , with effect July 5th , 2016 .
6 . Rental Tax Proposals There is a distinction at present between overseas investment companies that rent out properties , and those that develop land . The renters pay income tax on profits : the developers pay corporation tax .
UK companies , meanwhile , all pay corporation tax and it is suggested that logically the non-UK rental companies should be treated the same way . There is to be consultation on this issue which may lead to further legislative changes .