New CGT rules for non residents: what to do now

This is the first UK tax year in which non UK residents will be subject to Non Resident UK Capital Gains Tax (NRCGT) when disposing of their UK residential property to anyone other than their spouse/civil partner or to charity.  Non resident trustees and personal representatives pay NRCGT at 28% on taxable gains and individuals pay 18% or 28%, depending on their taxable UK income and other UK gains in the tax year in which the gain arises.  If non resident companies are not subject to Annual Tax on Enveloped Dwellings – CGT (ATED-CGT), which always takes precedence, they pay NRCGT at 20% instead.  Only closely held companies are affected by NRCGT.

The Reluctant Will Maker

When you are surrounded by wills on a daily basis (as I am), it’s easy to forget that, for some of our clients, even the thought of making a will is a stressful business, to be avoided at all costs.  This was brought home to me recently when I met a couple of Family Office bankers.  They explained that some of their clients find the whole will making process a bit daunting.  The lawyer asks a lot of serious and scary questions, such as what should happen to the family business, when should the children inherit, who should be their guardians etc. etc. and then nothing gets done!  As a lawyer, this is exactly what I don’t want to see happening, as I know the profound family heartache and disruption that can arise if someone dies without a will (see my blog: ‘Dying without a will – the hard facts’ 3 July 2014; I’m afraid that might indeed scare you).