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Capital gains tax on UK property

macaque_2
macaque_2 Posts: 2,439 Forumite
in Debate House Prices & the Economy
If true this could happen by the end of the year (and not before time).


"The Chancellor, George Osborne is considering introducing a capital gains tax for foreign investors as a way to try and control the rise of property prices in London."


http://www.myfinances.co.uk/mortgages/2013/11/02/osborne-may-unleash-cg-tax-for-foreign-property-investors
«134

Comments

  • antrobus
    antrobus Posts: 17,386 Forumite
    macaque wrote: »
    If true this could happen by the end of the year (and not before time).


    "The Chancellor, George Osborne is considering introducing a capital gains tax for foreign investors as a way to try and control the rise of property prices in London."


    http://www.myfinances.co.uk/mortgages/2013/11/02/osborne-may-unleash-cg-tax-for-foreign-property-investors

    It should be noted that Gideon has already imposed CGT on residential properties held by foreign 'non-natural persons'. Now he wants natural persons to cough up as well.

    (Plus there's that 15% SDLT rate, and the annual residential property tax that apply to £2m plus properties.)
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Considering they often buy through a company then they are not liable to CGT anyway.
  • antrobus
    antrobus Posts: 17,386 Forumite
    AndyGuil wrote: »
    Considering they often buy through a company then they are not liable to CGT anyway.

    No, but they pay Corporation Tax on any chargeable gains made. Which is the same difference. And companies don't get the benefit of a CGT allowance.
  • chewmylegoff
    chewmylegoff Posts: 11,469 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    AndyGuil wrote: »
    Considering they often buy through a company then they are not liable to CGT anyway.

    Offshore cos holding uk property are now liable to CGT (as well as 15% stamp and an annual holding charge) for uk property with a value >£2 million. I doubt many will be going down that route in future. Will be using trusts instead.
  • antrobus
    antrobus Posts: 17,386 Forumite
    chewmylegoff wrote: »
    Offshore cos holding uk property are now liable to CGT (as well as 15% stamp and an annual holding charge) for uk property with a value >£2 million. I doubt many will be going down that route in future....

    Gideons's little innovation.
    chewmylegoff wrote: »
    ....Will be using trusts instead.

    Possibly, but then they may get caught out by the existing relevant property trust regime anyway.
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    antrobus wrote: »
    No, but they pay Corporation Tax on any chargeable gains made. Which is the same difference. And companies don't get the benefit of a CGT allowance.

    In the country they are registered they pay this. This is located in a tax efficient way.;)
  • antrobus
    antrobus Posts: 17,386 Forumite
    AndyGuil wrote: »
    In the country they are registered they pay this. This is located in a tax efficient way.;)

    Except that Gideon's little innovation now imposes CGT on gains made on £2m plus residential properties on foreign registered companies as well. So location would be of no significance.
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    antrobus wrote: »
    Except that Gideon's little innovation now imposes CGT on gains made on £2m plus residential properties on foreign registered companies as well. So location would be of no significance.

    Businesses get CGT relief and pay corporation tax (in their tax registered country) instead.
  • chewmylegoff
    chewmylegoff Posts: 11,469 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    AndyGuil wrote: »
    Businesses get CGT relief and pay corporation tax (in their tax registered country) instead.

    No they don't. Unless the property is worth less than £2 million.
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 3 November 2013 at 7:23PM
    chewmylegoff wrote: »
    No they don't. Unless the property is worth less than £2 million.

    This doesn't work on a block of flats for example as each one is valued less. Most properties are less than £2m. Most of the gains have been on smaller properties. http://www.home.co.uk/guides/house_prices_report.htm?location=london&lastyear=1
This discussion has been closed.
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