Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Autumn Statement: CGT imposed on foreigners selling UK homes

Autumn Statement: CGT imposed on foreigners selling UK homes

The chancellor has announced that foreign owners selling UK homes will face a capital gain tax.

During his statement, Osborne said he welcomed foreigners buying homes, but claimed it was 'not right' that foreigners do not pay capital gains tax if they sell a home that is not a primary residence.

'In future foreigners who sell second homes in the UK will have to pay capital gains tax,' he said.

This measure, which was widely expected, is aimed at preventing a housing bubble, particularly in London and the South East.

As recently as last week, the Bank of England has started to withdraw some of its support to the housing market by, restricting access to mortgages for its Funding for Lending scheme in 2014.

In addition, Osborne has announced a further increase in stamp duty land tax (SDLT). Over the past decade, Treasury has collected more than £45 billion in stamp duty receipts.

Currently, SDLT starts at 1% on sales between £125,000 to £250,000 rising to 3% on sales of up to £500,000 and 4% on houses costing up to £1 million.

This week, tax advisors at PwC have called for Osborne to reduce the tax on homes between £250,000 and £300,000. They estimated the reduction to cost the Treasury about £150 million.

Brisith householders pay the highest property taxes in the developed world.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter