15 March 2016
Requirement to report disposal of main residence within 30 days relaxed for non-residents.
The non-residents’ requirement to report a disposal of a main residence within 30 days of the conveyance has been relaxed.
The ICAEW Tax Faculty reported that a new section would be inserted into TMA 1970 by Finance Bill 2016 to make the return optional when:
- a disposal of a residential property on or after 6 April 2015 is for no gain or loss; or
- the grant of a lease for no premium to an unconnected person is a bargain at arm’s length.
Since the relaxation is backdated to 6 April 2015 a non-resident who has not filed a return for a disposal at no gain or loss will not face penalties. Neither will a late elective return be liable to penalties.
Non-residents have been liable to capital gains tax on the disposal of a UK residential property since 6 April 2015.
