This note provides a brief overview of the scope of UK tax and includes the current (2018/19) tax rates and those proposed for tax year 2019/20, as announced on 29 October in the 2018 Budget. Please click here for a link to the PwC data card for all rates and allowances for 2019/20.
UK Resident and Domiciled Individuals
If an individual is resident and domiciled in the United Kingdom, they will be taxed on their worldwide income and capital gains as they arise.
Non UK Resident Individuals
If an individual is not UK resident, they will usually be taxed on their UK source income, but will not generally be taxed on capital gains, other than UK residential property and carried interest, even if the asset is located in the United Kingdom. Gains in respect of UK residential property owned by non-residents are subject to UK capital gains tax (CGT) at 28%. HMRC has published draft legislation to extend the CGT charge to UK commercial property interests too. This is expected to be effective from April 2019.