This measure extends the scope of the UK’s taxation of gains accruing to non-UK residents to include gains on disposals of interests in non-residential UK property.
It also extends the charge on gains on disposals of interests in residential property to diversely held companies, those widely held funds not previously included, and to life assurance companies.
The measure also taxes non-UK residents’ gains on interests in UK property rich entities (for example, selling shares in a company that derives 75% or more of its value from UK land).
Capital gains that arise when a second home or a rental property is sold or otherwise disposed of can be significant. The government thinks it is right that tax is paid sooner in respect of gains from residential property to reduce error and increase compliance.