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Posted Thu, 12 Aug 2021 05:12:49 GMT by steviekipper
Dear members, I hope someone can help clarify something. If one was to sell their business, there can be the possibility that one qualifies for Entrepreneurs Relief, meaning a much smaller tax rate is applied on the profit of the sale. I was informed recently if the director/owner of the UK ltd company is a non-resident, then there is no tax applied anyway (no standard tax and no need to apply for Entrepreneurs Relief tax) due to it being a capital gain tax and that there is none due to the non-residency status. Can someone clarify if this is true? That there is no capital gain tax at all on the sale of the business is applied and all profits of sale are then not taxed? Thank you
Posted Fri, 13 Aug 2021 14:19:04 GMT by HMRC Admin 10

You have to pay tax on gains you make on property and land in the UK even if you’re non-resident for tax purposes.

You do not pay Capital Gains Tax on other UK assets, for example shares in UK companies, unless you return to the UK within 5 years of leaving.

Capital Gains Tax


Posted Mon, 16 Aug 2021 08:37:52 GMT by steviekipper
Thanks, I am still not clear on the acquisition of a ltd company. So you mean there is no capital gains tax due on the sale of it at all? No need to consider Entrepreneurs Relief in this case because being a non-resident means zero tax due on the sale of that UK based company? Thank you
Posted Tue, 17 Aug 2021 07:51:03 GMT by HMRC Admin 17

If the customer has sold their shares in a UK Ltd company and the customer is non-UK resident, there is no Capital Gains Tax to consider and Entrepreneurs Relief is not appliable. 

The only occasion where CGT on shares may be applicable for non-residents is through indirect disposals of UK property or land.

Also see link:

Tell HMRC about Capital Gains Tax on UK property or land if you’re non-resident  .

Thank you.

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