There are a number of changes that overseas investors need to know about if they hold UK property.
The first relates to the introduction of capital gains tax (“CGT”). Unlike many jurisdictions, foreign owners have not had to pay tax on UK property gains. This is set to change from April next year. From April CGT will apply to gains on both direct and some indirect disposals.
A further change is the proposed introduction of a public overseas owners register. This will require overseas entities (other than governments and public authorities) to provide information on their beneficial ownership before they are able to purchase and then hold UK real estate. A government consultation on the proposed legislation has recently closed and it is anticipated that a Bill will be introduced next year with the register going live in 2021.
To find further information on these changes please contact Hewitsons real estate Partner Sarah Humble at sarahhumble@hewitsons.com.