It has been announced that the UK Government will shortly be issuing a new consultation document in which it will propose that the rate of Stamp Duty, the tax payable on purchase of a property, will increase further for non-residents who buy in England and Northern Ireland.
There is already a higher level of duty for anyone purchasing a second or further property, and that includes anyone buying their first property in the UK if they own one abroad, but this is proposed to be higher still.
The proposed figures are not yet known so I will update once they are available with comment on how this will affect people.
I understand that the purpose of this move is to raise money to combat homelessness and it is aimed at non-resident and foreign investors who push up markets out of the reach of first time buyers, particularly in London and the South East, but expats looking to buy a future home will also be affected.
A consultation document is not a law, rather it is a statement of intent but this proposed move will make UK property even less attractive to expat investors from a tax point of view. Property is already taxed on purchase, and on an ongoing basis if rented out and on sale if not a main residence. If you were considering building up a small property portfolio, it may be time to consider alternatives.
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