Welcome to our new website! Let us know what you think..

Register to get unlimited access to all of 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
Citywire TV
Play BlackRock UK Special Sits: when will we sell our star holdings?

BlackRock UK Special Sits: when will we sell our star holdings?

What would prompt Roland Arnold to sell the likes of Ashtead and Howden?

Play AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

Henderson International Income trust manager Ben Lofthouse shares his thoughts on recent developments in the tobacco sector in this video.

1 Play Renewable energy: what I found on my solar farm trip

Renewable energy: what I found on my solar farm trip

Renewable energy is attracting a lot of investor interest, so I headed to the UK's largest solar farm to find out more.

Your Business: Cover Star Club

Profile: how Matthew Butcher is carving a new role at Dart Capital

Profile: how Matthew Butcher is carving a new role at Dart Capital

The wealth management industry is undergoing a profound period of change: whether it wants to admit it or not.

Wealth Manager on Twitter