Thursday, March 15, 2012

UK tax system ‘helps foreign property buyers’

Do Russian bears poop in the New Forest?

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.

Posted by drewster @ 07:42 PM (1447 views)
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6 thoughts on “UK tax system ‘helps foreign property buyers’

  • Why would the Coalition want to change anything? The existing system props up house prices, that’s all there is to understand. How would you expect the electorate to re-elect you if they aren’t hopeful about their house price always going UP!

    Expect to see wide divergencies in price as lesser towns slip downward. Once we lose our AAA rating and mortgages become more costly, you may see an even bigger differential between London and the rest of the country….Looks like London is a great target for Spanish cash buyers getting their money out of Santander (just in case!).

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  • I suppose you have to weigh up the odds of the Euro falling more than the value of sterling + the asset value.

    My money would be on the Euro being safer. I think ultimately it comes back down to gambling on rising house prices… Buy in London, prices only ever go up etc…

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  • mark wadsworth says:

    There’s a bloke called Toby Lloyd who used to work for IPPR who did a couple of good pro-LVT pamphlets or books (although being lefties, they saw it as an additional tax not a replacement one).

    He now works for Shelter who are virulently anti-LVT and pro-housing subsidy, which stands to reason – if the homelessness problems were solved once and for all, they’d all be out of work.

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  • Suspect the London dirty bomb may provide some adjustment where the rigged “market” won’t

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  • or perhaps another summer of riots will keep prices at bay.

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