UK expats could be hit by tax ‘raid’
Thousands of Britons living abroad could be hit by a government tax ‘raid’ being planned by Chancellor George Osborne.
The UK Chancellor is set to announce plans for a new capital gains tax which will be aimed at expats and foreign nationals selling property in Britain. The proposed tax was revealed on Monday after Deputy Prime Minister Nick Clegg let slip that the tax plans would ensure that wealthy foreigners and expats who profit from the sale of UK based property should pay their ‘fair share’.
The proposals are thought to be in response to growing concerns over a possible housing bubble in London and the Southeast of England, an area which has seen property prices soar over the past few months.
“We are an open economy and we don’t want to pull up the drawbridge – that would be bad for the country, but we certainly want to make sure that people who invest very large amounts of money into properties in central London locations, which more often than not then stand empty, pay their fair share of tax on those transactions. That’s why we are looking at options like the differential application of capital gains tax to those kinds of transactions. Decisions on that haven’t yet been made,” Mr Clegg said.
The proposed plan has the potential to affect up to five million Britons living overseas. Mr Osborne is expected to unveil the tax plans in his imminent autumn statement.
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