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Capital gains tax for non residents: charge will apply to trusts

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HM Revenue & Customs has confirmed, that it intends, that the proposed capital gains tax charge on residential property (apparently of any value) owned by non resident 'non natural persons' will be imposed on disposals by non resident trusts as well as non resident companies in respect of all residential, non commercial property.

The term 'non natural persons' is also used in the Budget papers in relation to the new 15% rate of SDLT (stamp duty land tax) on the acquisition of £2m plus residential properties bought by 'non natural persons'. In relation to the SDLT charge, the Budget papers state that 'non natural persons' includes companies, collective investment schemes and partnerships in which a non natural person is a partner, but states that companies which are trustees of settlements, will be excluded in certain circumstances. It seems that in relation to the new capital gains tax charge non resident trusts and foundations will be caught.

The proposals, which will take effect from 6 April 2013, are subject to consultation but no publication date has been given for the consultation document. It is hoped that the detailed proposals will be released soon to give individuals plenty of time to review existing structures.


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