Buyers await clearer tax policy in Britain
With a capital gains tax for foreign investors coming in, industry players say uncertainty hangs over what has been a favoured market
Legal experts and property consultants have called for a clear tax policy for international property investors in Britain after the government announced a capital gains tax on foreign property investments.
An unclear policy could dampen international investors interest in the British economy, they said. In terms of investment, they expect Asian investors will shift their focus to other countries or to commercial properties in Britain that are not affected by the new tax regime.
Damian Bloom, a partner with international law firm Berwin Leighton Paisner, said the tax would be imposed on residential property held by non-UK resident individuals from April 2015.
"This will be perceived as an appropriate levelling of the playing field compared to UK resident individuals, and it not out of step with other major economies," Bloom said.
He added it would be helpful if the government could confirm "whether there will be any further changes to the taxation of residential property for the remainder of the current parliament".
Investors we have spoken to … may consider other cities such as New York
Chancellor of the Exchequer George Osborne yesterday announced plans to impose capital gains taxes on home sales by non-residents starting in April 2015 as the government hopes to improve revenues and cool off property prices in London.