AS2013: Foreign nationals to face CGT on home sales
As part of his Autumn Statement Osborne confirmed that he will introduce capital gains tax on property sold by overseas nationals and expats.
The chancellor said: “It’s not right that those who live in this country pay capital gains tax when they sell a home that is not their primary residence – while those who don’t live here do not.
“From 2015, we will introduce capital gains tax on future gains made by non residents who sell property”
The move has been mooted for some time and has led some tax experts to warn that it could lead to some investors abandoning Britain.
But Overseas Property and Finance expert Simon Conn said that it was unlikely that the implementation would have much of an impact.
He said: “This move was expected but with high demand for properties from both locals and foreign nationals it is unlikely to have an effect.
“The rate to be charged in the UK compares favourably with places like France, Portugal and Spain.
“The effect is likely to be negligible and the property value increases will mitigate the effect of the tax.”
The new tax will be implemented in April 2015.