UK Autumn Budget 2017 - capital taxes stand still

Nov 27, 2017

Inheritance tax (“IHT”) did not feature anywhere in the Budget speech or supporting documents with capital gains tax (“CGT”) relatively untouched.

However the introduction of the 30-day payment window between a capital gain arising on a residential property and payment of the CGT arising is being deferred until April 2020.

In addition, all gains on non-resident disposals of UK property will be brought within the scope of UK tax. This will apply to gains accrued on or after April 2019 and will include targeted exemptions for institutional investors such as pension funds.

Readers are reminded that Finance (No. 2) Act 2017 contains some major changes to both IHT and CGT under the guise of the new concept of deemed UK domicile which broadly applies if an individual has been UK resident 15 out of the previous 20 years. This legislation applies retrospectively from 6 April 2017. 

This means that the remittance basis for CGT will not be available to anyone with a deemed UK domicile under this concept.  The legislation in this area is complex and contains several transitional measures for those becoming deemed UK domiciled from 6 April 2017.