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 On the Road Challenge: Clay pigeon shooting with Thesis' Lansdowne

On the Road Challenge: Clay pigeon shooting with Thesis' Lansdowne

Eleanor Mahmoud goes clay shooting at the National Clay Shooting Centre with Sam Lansdowne from Thesis Asset Management

Play AA-rated Flood on gov't bonds: 'the maths doesn't add up'

AA-rated Flood on gov't bonds: 'the maths doesn't add up'

He also addresses why his Newton Multi-Asset Income fund has such a high cash weighting and why he sees renewables as such a good opportunity.

Play AAA-rated Ali: Identifying the peripheral European plays

AAA-rated Ali: Identifying the peripheral European plays

Citywire AAA-rated Tawhid Ali thinks that plenty of good stocks in the European periphery are being thrown out with the proverbial bath water.

Read More
Your Business: Cover Star Club

Profile: Brewin's Cardiff boss on the Welsh opportunity

Profile: Brewin's Cardiff boss on the Welsh opportunity

Prior to becoming head of Brewin Dolphin Cardiff, Welshman David Myrddin-Evans had only previously visited the city to watch the rugby.

Wealth Manager on Twitter