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It is possible: Increase Tax and Reduce Tax for Small Businesses? take 2

Author: Henry Ejdelbaum

Tags: Capital Gains Tax, overseas residents, Tax revenue

Here is another example how one idiosyncrasy of our Tax System could be easily fixed: Capital Gains Tax on the sale of properties held by overseas residents. The non-domicile concept is already difficult to comprehend for most people and I am not going to debate whether the non-domicile concept is beneficial to the UK because there are arguments for and there are arguments against.

But what I do not understand is if overseas residents (individuals or companies) acquire property assets in the UK and then dispose of these assets at a later stage they are not subjected to Capital Gains Tax.

Let me be clear, if a person does not live in the UK and (or to use the technical term is a non-resident) then they can acquire and dispose of assets in the UK without being subject to Capital Gains Tax. This is a privilege not available to you and me. No other country offers these benefits and we estimate that billions of £s of tax revenue is lost. Why can’t this loophole be closed? This will produce substantial tax revenue and the savings could be reallocated to reduce the tax burden to the rest of us.

What is your opinion on these matters?