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Up to 5 years in prison for criminals who use UK property market for money laundering

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Up to 5 years in prison for criminals who use UK property market for money laundering

Foreign companies owning UK properties will have to reveal their ultimate owners on the world's first public register.

https://www.gov.uk/government/news/up-to-5-years-in-prison-for-criminals-who-use-uk-property-market-for-money-laundering

 

Very interesting...how will it be enforced though?

 

 

 

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I drove down Bishops Avenue in London on Saturday. It's the road in Highgate that has all the massive houses on. Around 1/4 of them are falling down or behind big boards being renovated. It's clear as day they're used as vaults, not homes.

 

The Guardian revealed in 2014 that in total 16 of the properties (an estimated worth of £350 million) are derelict and have not been lived in for several decades. According to one resident, perhaps only three of the houses are occupied on a full-time basis.[9] One house, Heath Hall, was originally put on the market in 2011 for £100 million, but was later sold in 2015 for £25 million.[14] Most of the properties in the most expensive part of the avenue are registered to companies in tax havens including the British Virgin Islands, Curaçao, the Bahamas, Panama, and the Channel Islands, allowing international owners to avoid paying stamp duty on the purchase and to remain anonymous.[9]

Edited by honkydonkey

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“Most people who invest in the U.K. do so fairly..”

FFS, the f****ng politicians of this country will always want “investment” in f****ng property.

How long has this taken since panama leaks, pathetic.

Ban foreigners buying U.K. property, period. 

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17 minutes ago, mathschoc said:

“Most people who invest in the U.K. do so fairly..”

FFS, the f****ng politicians of this country will always want “investment” in f****ng property.

How long has this taken since panama leaks, pathetic.

Ban foreigners buying U.K. property, period. 

Actually the tax on buying property for foreigners has got less generous.

https://www.britcham.org.sg/static-pages/o49-feature-foreign-investors-hit-by-change-gains-tax-uk-properties

 

Quote
 

The UK property market has had a bumpy ride over the past few years. London recovered earlier than most, but many other regions look like they have turned a corner.

 
 

By Alan Lester, HW Fisher & Company

 

The capital’s property market, particularly prime residential, remains attractive to overseas investors. Areas such as Kensington and Chelsea remain hugely popular with foreign investors, while new developments in the more upmarket areas of the capital are being snapped up by overseas buyers.
 
 

Tax advantage closed

 
In the last Autumn Statement, the Chancellor announced a change to capital gains tax (CGT) rules for overseas investors buying UK residential property, designed to close a tax advantage where such overseas investors are treated more favourably from a tax perspective than British based landlords.
 
From Apr 2015, foreign investors will also pay tax on gains in value on UK residential properties they own. They don’t currently.
 
This move will bring those overseas investors broadly in line with similar UK landlords, help raise money for the Treasury, and maybe splash a little cold water on London’s constantly rising property market.
 
Currently, UK citizens and residents pay CGT on the profits of the sale of a property that is not their main home. Basic-rate taxpayers pay 18% of the profits while high-rate taxpayers have to stump up 28%.
 
The rule change may only apply to future increases in value and not previous growth. A consultative document was recently released and the exact details will be known later in the year. The change will also apply to UK expats selling properties while based overseas.
 
To the extent there is exposure for non-UK resident taxpayers in respect of these investment gains, they can usually offset the UK tax they have to pay against any additional domestic liability.
 
The Budget also announced changes to the Annual Tax on Enveloped Dwellings (ATED) charge paid by overseas businesses on residential properties held for non-commercial purposes.
 
The threshold has been lowered from £2m to £500,000, so ATED charges (and the associated CGT) will become payable on more properties. These extra ATED annual charges on the lower property levels are being phased in from either Apr 2015 or Apr 2016.

 

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38 minutes ago, iamnumerate said:

Actually the tax on buying property for foreigners has got less generous.

https://www.britcham.org.sg/static-pages/o49-feature-foreign-investors-hit-by-change-gains-tax-uk-properties

 

 

Sweet. If you want less of something, tax it. 

I've never really understood why the term 'investment' is used for property when talking about foreign investment. It's seems odd that someone 'over there' buying a house in UK is termed investment, just as someone else from 'over there' building a new power plant or bridge or shopping centre would also be deemed investment. 

I get it from the individual's perspective. Anything that you expect to make you money might be deemed to be an investment. 

Anyway, why give them £500k AETD free? If people are super keen on buying up UK property will this not encourage them to roll down from one large property to several smaller ones and thus maintain demand pressure on the lower end of the market (for London at least).

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2 hours ago, adarmo said:

Sweet. If you want less of something, tax it. 

I've never really understood why the term 'investment' is used for property when talking about foreign investment. It's seems odd that someone 'over there' buying a house in UK is termed investment, just as someone else from 'over there' building a new power plant or bridge or shopping centre would also be deemed investment. 

I get it from the individual's perspective. Anything that you expect to make you money might be deemed to be an investment. 

Anyway, why give them £500k AETD free? If people are super keen on buying up UK property will this not encourage them to roll down from one large property to several smaller ones and thus maintain demand pressure on the lower end of the market (for London at least).

Sop to developers so they have a price support level for those Battersea rabbit hutches.

Edited by Fromage Frais

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3 hours ago, adarmo said:

Sweet. If you want less of something, tax it. 

I've never really understood why the term 'investment' is used for property when talking about foreign investment. It's seems odd that someone 'over there' buying a house in UK is termed investment, just as someone else from 'over there' building a new power plant or bridge or shopping centre would also be deemed investment. 

I get it from the individual's perspective. Anything that you expect to make you money might be deemed to be an investment. 

Anyway, why give them £500k AETD free? If people are super keen on buying up UK property will this not encourage them to roll down from one large property to several smaller ones and thus maintain demand pressure on the lower end of the market (for London at least).

Yes, we want foreigners to invest in productive businesses in the UK instead of residential property, so tax them more.

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14 minutes ago, Bankside said:

I'm afraid you wont even get a Studio in Battersea for £500K these days

I would love to know who would pay that to live in a studio in Battersea.......those that would pay that don't live in Battersea......they are relying on others wanting to live in Battersea prepared to pay more than £500k......good luck with that.;)

 

EDit to say.....still free money is free to many, it has to find a home somewhere.....for most money will never be free, it has to be hard worked for.....a very uneven playing field, until the day it evens up.

Edited by winkie

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46 minutes ago, winkie said:

I would love to know who would pay that to live in a studio in Battersea.......those that would pay that don't live in Battersea......they are relying on others wanting to live in Battersea prepared to pay more than £500k......good luck with that.;)

 

EDit to say.....still free money is free to many, it has to find a home somewhere.....for most money will never be free, it has to be hard worked for.....a very uneven playing field, until the day it evens up.

wait till your bottles of aftershave say on them  "Paris New York Battersea" 

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5 hours ago, Bankside said:

I'm afraid you wont even get a Studio in Battersea for £500K these days

 

The asking prices for those new flats bear no resemblance to the asking prices of other flats nearby.

Studios typically ask for around £250k. There are dozens of 2 beds well under 500k

Here's a 3 bed asking for £340k

https://www.rightmove.co.uk/property-for-sale/property-52851270.html

4 bed asking for £375k

https://www.rightmove.co.uk/property-for-sale/property-65787220.html

 

 

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On 24/07/2018 at 13:18, Fromage Frais said:

Sop to developers so they have a price support level for those Battersea rabbit hutches.

 Indeed. Just when i thought the btl taxes would burn that support level. 

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On 24/07/2018 at 14:12, iamnumerate said:

Yes, we want foreigners to invest in productive businesses in the UK instead of residential property, so tax them more.

Erm. What?

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27 minutes ago, adarmo said:

Erm. What?

Foreign investment is good, but not in residential property as it just causes prices to overheat more.  So yes increasing taxes for foreigners who invest in residential property and getting less of it is a great idea!!  In this case investment does not increase capacity just makes more expensive, unlike e.g. Toyota building a new factory or buying shares in a UK company.

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On 24/07/2018 at 09:24, mathschoc said:

Ban foreigners buying U.K. property, period. 

+1

The horse has not just bolted before they thought about closing the stable door, it's enjoyed an unsuccessful racing career, had a job at a riding school and ended up in a Findus Lasagne 

Edited by disenfranchised

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30 minutes ago, disenfranchised said:

+1

The horse has not just bolted before they thought about closing the stable door, it's enjoyed an unsuccessful racing career, had a job at a riding school and ended up in a Findus Lasagne 

Brilliant

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On 24/07/2018 at 08:45, crazypabs said:

Up to 5 years in prison for criminals who use UK property market for money laundering

Foreign companies owning UK properties will have to reveal their ultimate owners on the world's first public register.

https://www.gov.uk/government/news/up-to-5-years-in-prison-for-criminals-who-use-uk-property-market-for-money-laundering

 

Very interesting...how will it be enforced though?

 

 

 

Does it include this place? Castle Donington Fire Control Centre owned by an offshored company in Jersey, Costing taxpayers £45 million I wonder who is really benefitting?

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6 hours ago, iamnumerate said:

Foreign investment is good, but not in residential property as it just causes prices to overheat more.  So yes increasing taxes for foreigners who invest in residential property and getting less of it is a great idea!!  In this case investment does not increase capacity just makes more expensive, unlike e.g. Toyota building a new factory or buying shares in a UK company.

Yes exactly. 

Sorry i misunderstood your earlier post.

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On 24/07/2018 at 08:45, crazypabs said:

Up to 5 years in prison for criminals who use UK property market for money laundering

Foreign companies owning UK properties will have to reveal their ultimate owners on the world's first public register.

https://www.gov.uk/government/news/up-to-5-years-in-prison-for-criminals-who-use-uk-property-market-for-money-laundering

 

Very interesting...how will it be enforced though?

 

 

 

Does this mean that (more)  foreign criminals will need to be banged up at the UK taxpayers' expense?  

Just confiscate the properties - cash from sales could go to the NHS - and deport them, with no right of return.

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  • 339 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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