HM Revenue and Customs (HMRC) have welcomed 'final comments' regarding their draft of the Capital Gains Tax (Amendment) Regulations 2013, which sees the amendment of regulation 15 of the Capital Gains Tax Regulations 1967. The draft also removes a reference to being ‘ordinarily resident’ in the UK.
The 2013 draft has also removed the requirement that a person must be resident in the UK (or working here) to be joined as a third party to an appeal, or to apply to a tribunal for determination of an asset’s market value.
As a result there will be an extension of these rights to 'non-natural persons' disposing of UK residential property at a value of more than £2 million, who become liable to Capital Gains Tax by virtue of the 2013 Finance Bill.
Although the Finance Bill will remove the requirement for 'ordinary residence' from primary tax legislation, it will not lead to the amendment of the 1967 regulations.
Formal consultation on the adjustment to the concept of 'ordinary residence' has been carried out over the last two years.
The revisions will come into force from 6 April 2013 and HMRC has announced that "any final comments on this revised draft should be sent by 12 March".