News Analysis: Chancellor may bring in new tax on foreign property owners in UK

Robert Drysdale, Rooks Rider Solicitors Associate and specialist in tax, trusts and wealth planning, comments:

It has been reported in the UK press this week that the Chancellor, George Osbourne, is considering imposing a new tax on wealthy foreigners who own high value property in the UK, instead of introducing a tax on all mansions, as favoured by the Liberal Democrats in the Coalition.

The Government has dismissed these reports as speculation, but Mr Osborne could be preparing to announce the extension of UK Capital Gains Tax (CGT) to overseas investors holding UK residential property in his Autumn Statement on 4 December.

UK residents generally have to pay CGT on any gain from selling a property which is not their principal residence. Non UK investors are generally exempt, unless they hold their UK property through a corporate structure.

Any changes could impact on commercial as well as residential investors. We will keep you advised of developments once we know more.

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