I would like to contribute to the non-dom discussion, especially looking at the capital gains tax aspect.
UK non-residents have never paid capital gains tax on their properties and as of 6 April 2015 they will now have to pay tax on all the residential properties that they own and sell in the UK. Clearly this makes sense and will be a welcome addition to our economy. A serious amount of money could have been collected had this rule been brought in many years ago, but I am sure that the non-residents are not smiling now. But before you rub your hands with glee have you read the “small print”?
The capital gains tax rule does not apply to commercial properties such as office buildings, which is still saving non-residents quite a bit in tax. Why are commercial properties excluded? Surely it would make sense to tax both.
I am not sure if I am entirely in sync with this small-print exemption, but I see interesting times ahead and more noise in the press, without a doubt.
Henry Ejdelbaum
Managing Director,
AIMS Accountants for Business,
London
