UK Release Guidance on Capital Gains Payment for Foreign Property Buyers
The HMRC in the UK has published released guidance illustrating the requirements which will be imposed on foreign (or non-UK resident) corporate investors wishing to register and make direct or indirect disposal of UK commercial property or land.
Last week, legislation was passed for most other investments that carry most such investors must:
- Pay UK corporation tax on capital gains (CGT) from direct/indirect sales of UK commercial real estate or land.
- Register for UK corporation tax within 3 months following the sale of the property.
Even if no sale has taken place, foreign investors will have to register by April 6th 2020, when they will start to fall under the necessary income tax from UK property, as well as capital gains tax.