How the UK’s next budget may affect UAE investors – The National

How the UK’s next budget may affect UAE investors – The National

The new chancellor's March 11 budget could have implications for UAE residents invested in the UK. The tax cost of buying (and selling) UK land if you are non-resident has steadily increased over the last 10 years and looks set to go up again after the budget.. Non-resident companies can still be subject to corporation tax on UK earnings, particularly rental income and capital gains on UK land.. Under current statute the rate of corporation tax will drop to 17 per cent from 19 per cent on April 1.. For those offshore companies who might have been putting off realising a profit on UK land, delaying to April will no longer produce a saving.. Traditionally those outside the UK never had to concern themselves with capital gains tax unless they were only temporarily (for less than six tax years) non-resident.. Non-residents will remain outside the scope of capital gains tax on the sale of any other UK assets and no changes on this front have been mooted.. For any entrepreneurs resident in the UK or thinking of becoming UK resident, they will be paying more tax on a sale of their businesses in future tax years, or even post budget