Skip to main content
Banner image for Huw Merriman

Huw Merriman

Member of Parliament for Bexhill and Battle

Main navigation

  • Home
  • About Huw Merriman
  • News
  • Campaign Responses
  • Campaigns
  • In Parliament
  • Contact
  • March 2021 - Spring Budget
  • Newsletters
  • Coronavirus (Covid-19)

Tax Avoidance by non-resident property owners

  • Tweet

A number of constituents contacted me about Capital Gains Tax on commercial property transactions.

It is vital to ensure that everyone is paying their share of tax. If those with the most in society are not making a fair contribution, we will not be able to fund our public services, and the tax burden will disproportionately fall on those who cannot take advantage of tax-efficient arrangements. Thanks to the significant steps which have already been taken since 2010 to tackle avoidance, evasion, and non-compliance, the UK’s ‘tax gap’ is now one of the lowest in the world.

At the Autumn Budget the Government confirmed its intention to build on this good work by legislating to ensure non-residents do not enjoy a tax advantage when disposing of UK property. 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 there will be targeted exemptions for institutional investors such as pension funds, to ensure there are no unintended consequences to this measure.

New Clause 2 of Finance Bill: When this issue was brought up during consideration of the Finance Bill in October, for a number of reasons, the Government did not support adding New Clause 2 as drafted. Ministers were clear at that time that the Treasury would continue to look closely into this issue, but commercial property is an incredibly complex area of the law and it is important to ensure any action in this area is properly considered before bringing forward legislation. I welcome the fact that the Government will now be doing this following the Budget.

Rules have already been introduced in 2015 to ensure that non-residents now do pay tax for the sale of UK residential property. These new measures will strengthen those rules, by ensuring this also applies to disposals of non-residential property. I can also assure you that all UK residents, whether UK-based or non-domiciled, do pay tax on profits from selling UK land.

Campaign Responses

  • Communities, Local Government and Housing
  • Department for Digital, Culture Media & Sport
  • Education
  • Energy
  • Environment, Food, Rural Affairs, Animal Welfare
  • Equality and Human Rights
  • Europe
  • Foreign & Commonwealth Office
  • Health
  • Home Office
  • International Trade
  • Transport
  • Treasury
    • Beer Duties
    • Tax Avoidance by non-resident property owners
  • Work and Pensions

Huw Merriman MP for Bexhill and Battle

Footer

  • About RSS
  • Accessibility
  • Cookies
  • Privacy
  • About Bexhill and Battle
  • About Huw Merriman
  • Campaign Responses
Promoted and published by Huw Merriman c/o 29-31 Sea Road, Bexhill on Sea, TN40 1EE
Copyright 2021 Huw Merriman MP for Bexhill and Battle. All rights reserved.
Powered by Bluetree