London’s high end property market has been fuelled over the past few years by foreign buyers.
It is rumoured that the chancellor, George Osborne, may use his autumn statement to announce that Capital Gains Tax will apply to non-resident second home owners.
Some fear this will reduce the attractiveness of properties in London, but this tax would be in-line with similar taxes that foreign owners pay in other European cities.
Foreign buyers are currently subject to higher stamp duty rates if they buy properties through overseas structures.
Let’s see if this will have any impact on the galloping prime central London property market. What remains clear is that London is a safe, stable market which foreign buyers are currently happy to invest in.
Source: Financial Times