Asian property buyers and investors now appear to be firmly in the sights of the British government following a statement from Deputy Prime Minister Nick Clegg in the British Parliament on Monday.
In a news conference, Clegg said: "We certainly need to make sure that people who invest very large amounts of money into property in central London locations…pay their fair share of tax in those transactions."
It has been widely predicted in recent weeks that Britain may impose new capital gains taxes on foreign property investors in response to soaring house prices in London. Clegg added that the British government was reviewing the matter before Finance Minister George Osborne’s update to parliament on his economic plans on December 5, but added no decision had yet been made.
Britons currently pay capital gains tax – typically at the rate of 28 percent – on any profit from selling property that is not considered their primary residence. Foreign property investors are exempt.
Earlier British media outlet Sky News, citing unnamed Treasury officials, reported that Britain was considering making foreign property investors pay capital gains tax.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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