However, a new charge to capital gains tax was introduced in Part 3 of Finance Act 2013, which applies to a company irrespective of where it is resident.
At Budget 2012 the Government announced a package of measures to counter arrangements to avoid tax by “enveloping” high value residential property in the UK. These measures are:
- the introduction of a 15% rate of SDLT when chargeable interests in residential property worth more than £2 million are “enveloped”, that is, purchased by certain persons including corporate bodies, on or after 21 March 2012 and conditions are met (FA03/Sch4A);
- a new annual charge on residential property worth more than £2 million and held by “envelopes”, taking effect from 1 April 2013 - the Annual Tax on Enveloped Dwellings (ATED); and
- a new capital gains tax charge where “envelopes” such as companies dispose of residential property which has been subject to ATED on or after 6 April 2013.
However, this generally relates to residential property only and a liability to ATED for any period from 1 April 2013 onwards where:
- a company (including a body corporate, but not including certain public bodies e.g. the British Museum, nor a corporation sole);
- a partnership which includes a company as a member of the partnership; or
- a collective investment scheme has a ‘single-dwelling interest’ in a dwelling worth more than £2 million as at 1 April 2012.
Gains from sale of UK residential property, on or after 5 April 2015,are subject to capital gains tax and subject to disclosure requirements prescribed by HMRC.