New Tax for Foreign Property Owners in UK?
Taxing high earners, or those who own high value UK property, is a topic which is regularly debated by UK Government. Recent press reports have suggested that the Chancellor may be considering a new tax which will target non UK residents who own property in the UK. The tax, which would be an extension of existing Capital Gains Tax (CGT) legislation, is being considered aside from the ‘mansion tax’ concept favoured by the Liberal Democrats.
The current rules require UK residents to pay CGT on gains realised when selling a property which is not deemed to be their principal private residence. At this time, most non-residents are not subject to any CGT charge on second homes – a loophole which has been the subject of some debate.
It is expected that any announcement would be made in the Autumn Statement on 5 December 2013.