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Insight

Budget 2014; what's new for non-residents?

19/03/2014
Personal allowanceThe Government has announced that it intends to consult on whether to restrict the UK personal allowance so that it is available only to UK residents, and to non-UK residents who Personal allowance

The Government has announced that it intends to consult on whether to restrict the UK personal allowance so that it is available only to UK residents, and to non-UK residents who have strong economic connections to the UK. This is the approach already taken by many other countries, including most of the EU.

At present a non-UK resident can claim a personal allowance if they are a commonwealth or EEA citizen (and in some other cases) regardless of their connection with the UK.

 

UK residential property

The Government has confirmed the proposal announced in the Autumn Statement 2013 that CGT will be charged on gains arising from April 2015 to non-UK residents disposing of UK residential property.  A consultation will be held before legislation is introduced in Finance Bill 2015.

This marks the continuation of the Government's move to impose CGT on UK residential property owned by non-residents.  Historically non-UK residents were beyond the scope of a direct charge to CGT, even on the disposal of property and other assets located in the UK.  From 6 April 2013 CGT was imposed on disposals of high value UK residential properties by "non-natural persons" (i.e. certain companies partnerships on collective investment schemes), including non-UK residents in those categories.  For properties already held on 6 April 2013 this charge applies only to gains accrued on or after 6 April 2013.

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