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UK Tax Update for Non UK Resident Landlord

UK Tax Update for non-UK resident landlords
 
If you are a non-UK resident landlord there have been some changes regarding the tax you will pay on your rental property. Should you decide to sell your UK property at some point in the future you will need to report the disposal to HMRC and you will now pay tax on the gain (or loss) made on the sale.
 
Even if you are not thinking of selling the property for some time you may want to consider valuing your property now in order to be prepared to meet these new tax requirements.
 
Calculating your gain
 
This change in tax centres around the value of your property on 5 April 2015. The default method for calculating the gain (or loss) on the disposal is to deduct from the sales proceeds, the market value of the property as at 5 April 2015, rather than the actual cost of the property when you first acquired it. This method results in only the gain arising after 5 April 2015 being assessed to tax.
 
Should you value your property now?
 
HMRC’s advice is that,
 
“it’s up to you to choose how to value the property and whether to get more than one valuation, HMRC don’t have a preference for how this should be done. It’s not necessary to get a valuation carried out in April 2015 instead you can wait until you make the disposal.
 
It’s sensible to record in April 2015 what condition the property is in and any unusual features as this will help make a fair valuation later on.”
 
How we can help
 
If you would like the peace of mind of having that valuation done now we can make arrangements to do this for you. We will then send you a copy of the valuation and safely store the information so it is available should you wish to use it in the future.
 
If you would like more information about these changes to tax for non-UK resident landlords we recommend you look at https://www.gov.uk/capital-gains-tax-for-non-residents-uk-residential-property or seek advice from an independent tax adviser.
 
We hope this information is useful to you and if you are a landlord of a property in the North Birmingham, Sutton Coldfield, Tamworth, Lichfield area and would like discuss the management of your property by all means contact us on 01212402244.