The draft legislation has now been published

• Under the proposals:
  • non-resident UK property investors will be charged on the gain made from the sale of their property
  • it is on the gain from 6 April 2015
  • the rate will be between 18% and 28%, the same rate as UK resident individuals
  • will also be levied on off-plan properties
  • applies to individuals, trustees, estates and close companies. It does not apply to non-resident institutional investors selling shares or units in a collective investment scheme provided they are “diversely held” and not a vehicle set up to avoid the tax liability. This will be subject to certain tests
• Using the tax bandings currently in place for individuals, those with a taxable income under around £32,000 will be liable for the 18% charge and any additional gain will be at 28%. An annual exception (which is currently £11,000) may also apply
• Non-resident companies will be taxed at 20%, the same rate as UK companies. They will also benefit from certain allowances
• Principal Private Residence allowance may be available if you have resided in the property for at least 90 nights in that year
• Obtaining a valuation prior to 6 April 2015 should be considered
• It is recommended that you seek advice from a UK tax specialist

Please note that this is a brief summary of the draft legislation. It is recommended that you seek appropriate professional advice. You should not, in any way, rely on the above summary.