BUDGET 2016: Measures to stop non-resident developers of UK property paying less tax are set to come into force this summer.
The government said in the Budget that it was acting to ensure than non-resident developers of UK property will be brought into the UK tax system on the profit from that development to make sure that there is a level playing field between UK developers and those based in offshore jurisdictions.
It said that property developers already paying full UK tax should not be affected.
The legislation will put in place a specific set of rules to tax trading profits derived from land in the UK which will apply equally to both resident and non-resident businesses and will not depend on the existence of a “permanent establishment” in the UK.
Click here to read the policy paper.
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