Question:
Britain will tax non-residents selling UK residential property
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
The UK Government plans to apply capital gains tax where a non-resident sells UK residential property from April 2015, the start of the next English tax year. The new tax will be at a rate of either 18% or 28%. The particular rate depends on your UK income level.The capital gain will be calculated from April 2015 only.The new tax won’t apply to your home or former home for the period that you held it as your main residence.The new tax won’t apply to boarding schools, nursing homes, other communal residential properties, foreign real estate investment trusts or non-residents selling shares or units in a property investment fund. The new tax won’t apply to pension funds. All types of foreign trusts will have to account for the new CGT in the same way that UK trustees do now and the tax will apply to individuals and companies.With the governments around the world struggling to turn budget deficits into surplus there is an increasing trend towards hitting non-residents (read “non-voters”) with increased taxes. WTB 575/2014Andrew Lovett5 May 2014
