Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether it is his policy that gains made by non UK residents on sales of UK immovable property which are held by offshore companies held by Luxembourg companies will be subject to UK tax.
In April 2015, the government introduced a charge on non-residents’ gains on the direct disposal of UK residential property.
At Autumn Budget 2017, the government announced that a charge would be extended to gains made on disposals of all UK residential and commercial property by non-residents, including disposals made indirectly through the sale of shares in a property rich company.
A technical consultation was launched at Budget. This is focused on the detailed implementation of this policy, and does not solicit views on wider changes to the UK property tax regime.
It is the government’s policy that all double taxation treaties should permit gains on the direct and indirect disposal of UK immovable property to be taxed in the UK. An avoidance rule was introduced with immediate effect from Autumn Budget 2017 to prevent non-residents from abusing existing treaties to avoid the new charge.