British Expatriates With Property In The UK Will Face New Tax
There are thousands of Brits currently living abroad, and many of the wealthier ones could find themselves caught in a tax raid. The targets of which are foreigners who are purchasing and selling properties in the United Kingdom. Any overseas nationals, or British expatriates with property will incur capital gains tax. The bearer of bad news was the Chancellor George Osborne, who was the one who made the announcement.
The decision has been made on the basis of fairness. Nick Clegg, deputy Prime Minister, said that the proposals have been made to make sure wealthier foreigners ‘pay their fair share’ when they purchase and sell properties in Britain.
Fair is fair
While the proposal targets foreigners living in Britain, it also affects British expatriates with property in the United Kingdom. This is due to British expats having the classification of non-residents. Figures show that there are roughly five million Brits living outside the United Kingdom. However, there are no statistics that reveal the number that own property in the UK while living as expatriates.
Currently, all British home owners have no option but to pay capital gains tax if they realise a profit on property that is considered not to be their main residence. Tax experts have made a warning in regards to the new measures. Saying that there will be a big impact for Brits who head to foreign lands for work, while they keep hold of properties in the United Kingdom that they plan on selling.
One huge concern has been the creation of a housing bubble, through foreign buyers who regard property in London and the South East as a safe and secure investment. And the demand for prime property in London by international buyers has meant that house prices are soaring well above inflation. This is having the unfortunate effect of pricing Brits out of the housing market.
The Deputy Prime Minister has made it clear that he does not want to stop investment from overseas. But it was important that foreigners with deep pockets do not escape from taxation, since British expatriates with property do not escape any taxation on any property they own. It would only be fair, if this was the case.