Schedule 1 to Finance Act 2019 introduced new provisions extending taxation of gains accruing to non-UK residents to include gains on disposals of interests in non-residential UK property.
It also extended taxation of gains on residential property to include disposals made by widely held companies, by certain investment funds and life assurance companies. The new rules apply to disposals made on or after 6 April 2019.
These regulations amend part of those rules specifically concerning ‘UK property rich’ collective investment vehicles (CIVs) and their investors.
The amendments follow representations made by stakeholders after the rules were introduced. They ensure the legislation will work as had been intended.
In particular, the changes mean that investors who are exempt from tax on capital gains can benefit from that exemption when investing in these vehicles. They also remove unintended technical barriers to eligible CIVs making elections for transparency or exemption.
This consultation will be of interest to managers and advisers of CIVs investing predominantly in UK real estate, to those holding an interest in these, and to representative bodies.
The changes mainly affect non-UK residents, but there are also impacts on CIVs and investors resident in the UK.
Before submitting your response, you can read:
- (draft) The UK Property Rich Collective Investment Vehicles (Amendment of the Taxation of Chargeable Gains Act 1992) Regulations 2019
- a (draft) explanatory memorandum