Legislation will be introduced in Finance Bill 2015 to bring non-UK residents within the charge to CGT when they dispose of a UK residential property interest. Non-UK resident individuals and trustees may be able to benefit from private residence relief if they meet new qualifying conditions. But provisions will also restrict access to private residence relief for properties located in a territory in which the individual is not tax resident where the person does not spend a minimum of 90 midnights in the property over the year. 

Non-resident institutional investors that are diversely owned, and companies that are not controlled by five or fewer persons will be exempt from the charge. Provisions will make clear that a residential property interest includes an interest in land that has at any time in the person’s ownership consisted of or included a dwelling. 

The meaning of ‘dwelling’ will be based on that found within the annual tax on enveloped dwellings (ATED) legislation but will be modified, in recognition of changes to the provision of student accommodation, to make clear that purpose built student accommodation that is not linked to a specific institution is one of the classes of use not regarded as use as a dwelling. 

Provisions will make clear that the CGT charge will be due to be paid within 30 days of the property being conveyed, unless the person has a current self-assessment record with HMRC when payment will be at the normal due date for the tax year in which the disposal is made.