Thursday, March 15, 2012
UK tax system ‘helps foreign property buyers’
Britain's tax system is encouraging the world's super-rich to pile into London property in such numbers that it is now acting as a reserve currency for the wealthy, according to a leading think-tank. The Institute for Public Policy Research (IPPR) said a major factor supporting the flow of overseas demand into London residential property is the UK's "highly favourable" regulatory and tax environment for foreign buyers. Overseas buyers looking for a safe-haven investment amid the global economic turmoil find themselves exempt from several UK property taxes and able to avoid others, it said. The IPPR urged the Government to act to change this in next week's Budget.