The Government has confirmed it will introduce capital gains tax for foreign property owners.
Delivering the Autumn Statement last week, Chancellor George Osborne said foreign investors who do not reside in the UK will have to pay capital gains tax on future gains on UK residential properties from April 2015.
The current rates for capital gains tax are 18 per cent or 28 per cent, depending on your income tax rate, with the tax levied on profits made when reselling all but your main residence.
Osborne said: “Britain is an open country that welcomes investment from all over the world, including investment in residential property. But it is not right that those who live in this country pay capital gains tax when they sell a home that is not their main residence, but those who don’t live here do not.
“That is unfair, so from April 2015 we will introduce capital gains tax on future gains made by non-residents who sell residential property here in the UK.”