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Sancho Panza

Thousands Of Britons Caught Up In Tax Raid On Wealthy Foreigners

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Telegraph 18/11/13

'Thousands of Britons living abroad face being caught up in a tax raid on wealthy foreigners buying and selling property in the UK. George Osborne, the Chancellor, is preparing to announce that capital gains tax will be charged on British property sold by overseas nationals and expats.

The Coalition plan was disclosed by Nick Clegg, the Deputy Prime Minister, who said that the proposals would ensure that wealthy foreigners who buy and sell British property "pay their fair share".

However, it is understood that Mr Clegg's plan would also apply to British people living abroad and who are classed as non-residents here, but still own property in the UK.

Approximately five million Britons live abroad. It is not known how many of these still own a property here and are non-resident.

Tax experts warned that the measures could have significant consequences for Britons who go abroad to work while retaining property in the UK that they may wish to sell.

The new measures are designed to address concerns that a housing bubble is being created by foreign buyers who regard flats and houses, particularly in London and the South East, as a safe investment.

London house prices are far outstripping inflation because of such fierce demand for prime property among global buyers, pricing many British families out of the market.

More than £7 billion was spent last year by international investors on properties in London.

The Coalition has grappled with ways of increasing taxes on multi-million pound properties.

It is understood that the latest proposal would raise less than £100 million for the Treasury.

Mr Clegg stressed that the Coalition did not want to "pull up the drawbridge" to overseas investment, but he said it was essential that wealthy foreigners are not exempt from property taxes paid by Britons.

British home owners currently have to pay capital gains tax if they make a profit when they sell a property that is not deemed to be their main residence.

However, foreign investors such as the Russian oligarchs and Middle Eastern oil billionaires buying up UK homes are exempt from tax on all properties, making London homes in particular an attractive option.

The new policy would impose a capital-gains tax of 28 per cent on the sale of second homes in the UK that are owned by overseas investors, including expats, it is understood.

Tax experts warned on Monday night that the changes could reduce the attractiveness of the UK property market.

Figures earlier this month showed that British households pay the highest property taxes in the developed world, with the amount of stamp duty paid on the average house sale now almost double the level it was at the peak of the last housing boom.

UK residents pay twice as much as the international average, a report by the think tank Policy Exchange found.

Property taxes in Britain cost the equivalent of 4.1 per cent of gross domestic product – around £70 billion — in 2011, the think tank said. The OECD average is 1.8 per cent.

A Treasury spokesman said: "We do not comment ahead of the Autumn Statement."'

Edited by Sancho Panza

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I am actually concerned by this as I can just see my local EAs adding the CGT to the asking prices - and the stupid sheeple will still be going out and offering the asking prices on them... and the Express will be saying how HPI is another 28% or 40% or whatever.

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"Capital gains tax will be charged on British property sold by overseas nationals and expats."

Can you still dodge property taxes by using a company to own it instead and then trade all the shares?

What.....like Thatcher's Belgravia house?

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More than £7 billion was spent last year by international investors on properties in London.

So we are going to lose Britain's main export London's property.

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The government solution to every problem is take more off people.

The real solution would be to stop taking and let people live their lives and free enterprise to reign.

The current system is open to abuse and corruption by those taking.

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The government solution to every problem is take more off people.

The real solution would be to stop taking and let people live their lives and free enterprise to reign.

The current system is open to abuse and corruption by those taking.

The majority of my money is taken off me not by the government, but by a landowner.

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Tax experts warned on Monday night that the changes could reduce the attractiveness of the UK property market.

It wouldn't reduce the attractiveness to priced out natives, but they don't hire tax experts so feck 'em. :rolleyes:

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This will be the tip of the iceberg. Property is hard to hide and thus easy to tax.

My gut feeling is that this isn't enough to help kick off a crash in London but could help along price movements already in motion.

Thoughts?

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The government solution to every problem is take more off people.

The real solution would be to stop taking and let people live their lives and free enterprise to reign.

The current system is open to abuse and corruption by those taking.

In this case though, they are not taking money off people, they are talking about taking a percentage of unearned wealth off an person who has simply held an asset for a period of time, which has appreciated partly via the taxes of those paying income tax.

I never understood why work is taxed so much more than unearned wealth.

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In this case though, they are not taking money off people, they are talking about taking a percentage of unearned wealth off an person who has simply held an asset for a period of time, which has appreciated partly via the taxes of those paying income tax.

I never understood why work is taxed so much more than unearned wealth.

Because rich people don't work, they just leverage up their assets in casino UK.

The poor people aren't controlling the puppets in government, so we get taxation that favours the rich.

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I never understood why work is taxed so much more than unearned wealth.

Because politicians make more money from 'unearned wealth' than work.

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