Compliance

How UK’s Budget 2025 Impacts Non-Residents: Capital Gains, Crypto Reporting & ATED Reliefs

Budget 2025 brings major changes for non-UK residents—from capital gains tax updates to new crypto reporting requirements and changes to the Annual Tax on Enveloped Dwellings. Here’s what international taxpayers should know.

By NomadicTax Research Team • 5-8 min read • March 25, 2026

## Key UK Measures from Budget 2025 Affecting Non-Residents Taken from HM Treasury’s Budget 2025 legislation (Finance Bill 2025-26).([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai)) Sudden shifts include: - **Cryptoasset Reporting Framework (CARF)**: UK cryptoasset service providers will be required to report on their UK-resident customers.([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai)) - **International Controlled Transactions Schedule (ICTS)**: Multinationals must file ICTS, effective for accounting periods beginning **1 January 2027**.([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai)) - **Corporate Interest Restriction** simplification: administrative changes take effect for periods ending **on or after 31 March 2026**.([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai)) - **Non-resident Capital Gains & ATED Reliefs**: The definition of a “property rich entity” will be amended, and ATED late or out-of-time reliefs expanded effective **1 April 2026** (companies) and **6 April 2026** (individuals).([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai)) - **Dividend Tax Credit Abolished for Non-UK Residents**: Notional credits on dividends from UK companies will no longer apply from **6 April 2026**.([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai)) - **Construction Industry Scheme (CIS) Fraud Provisions**: HMRC gets stronger fraud powers; GPS status can be removed immediately, penalties up to 30%, effective from **6 April 2026**.([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai)) ## Actionable Insights for Non-Residents & Businesses - **Review property ownership**: If entities are property rich, ATED definitions change—planning structures should be assessed prior to the April 2026 deadlines. - **Dividend strategies**: If you receive UK company dividends, understand that non-residents can no longer use dividend tax credits after 6 April 2026. - **Crypto services or users**: UK users of cryptoasset platforms will see more visibility; service providers need compliance systems for CARF. - **Multinationals**: For companies with UK footprint, the new ICTS adds a reporting requirement beginning financial years 2027; initiate consultation feedback and prepare transfer pricing documentation. ## Compliance & Timing Considerations - Legislation becomes effective either “from the date of Royal Assent” or specific dates in **April 2026**, so check whether your tax year is affected. - Watch for drafting of regulations, especially for schemes like ICTS—consultations in spring 2026 will flesh out details.([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai)) - Maintain records showing compliance with the updated definitions and reporting deadlines. ## Examples - A non-UK resident holding UK company shares who receives dividends after **6 April 2026** can no longer depend on the old credit; effective tax liabilities may increase. - A business with transactions through a “property rich entity” should check the new definition by **1 April 2026** to assess ATED liability.