Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. 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 Taxicab Tenner: AXA IM's Nicolas Trindade

Taxicab Tenner: AXA IM's Nicolas Trindade

After a summer break, it is the turn of AXA Investment Manager's Nicolas Trindade to give a £10 view of how fixed income is faring.

Play Wealth Manager Olympics: the Relay

Wealth Manager Olympics: the Relay

In the final round of the Wealth Manager Olympics, our intrepid athletes team up for the relay.

Play Wealth Manager Olympics: the Shot Put

Wealth Manager Olympics: the Shot Put

After busting a gut in the 100m sprint, our wealth manager Olympians displayed their brute strength in the shot-put.

Read More
Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter