Homeowners warned over potential 20% exit tax on property

"Leaving the UK could soon become more expensive for homeowners if a proposed exit tax is introduced for those looking to emigrate from the UK. The government and HMRC currently say there is no general exit tax in force, but recent reporting shows Treasury officials are modelling options and Ministers have not ruled out new measures. If you are buying a house in the UK now, or already own one, the way exit rules are drafted could affect whether you pay tax on that property."

"Official HM Revenue & Customs (HMRC) guidance confirms that simply leaving the UK does not trigger deemed disposal of assets, including property or land, and that many of the usual tax reliefs remain unaffected provided other tax conditions are met. According to the Capital Gains Manual (CG13400), there is "no legislation applying to all categories of person which deems the cessation of residence ... to be an event giving rise to a deemed disposal"."

HMRC guidance states that simply leaving the UK does not trigger a deemed disposal of assets, including property or land, and many tax reliefs remain available if other conditions are met. The Capital Gains Manual (CG13400) says there is no overarching legislation deeming cessation of residence to be a deemed disposal event. Treasury officials are modelling options for a possible exit tax and Ministers have not ruled out new measures. Non-residents who later sell UK land or property may still face Capital Gains Tax, so holding a UK home while abroad carries CGT risk. Council tax increases for some homes are also being considered.

Read at Homebuilding