22nd November 2017 Rosalind Connor comments in Professional Pensions on Govt exempting schemes from immovable property tax
The government plans to exempt pension funds from changes announced today that will apply UK tax to gains made by non-residents on immovable property.
The government wants to remove an advantage which non-residents have over UK residents by aligning the system with other countries.
All gains on non-resident disposals of UK property will be brought within the scope of UK tax and this will apply to gains accrued on or after April 2019.
Rosalind Connor commented:
“The fact they are exempting the pension schemes from the change is exactly the way to go in relation to immovable property.
“It looks like the change applies to real estate. I suppose the change they are putting in place is to do with tackling unfairness in the system in relation to differences between different investors.
“From the perspective of pension schemes, they are not individual investors in that they do not reside there [in these properties], and so it is hard to see why they would be covered in this legislation.”
Read the full article in Professional Pensions here
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