UK Capital Gain Tax – the current exemption from CGT for non-UK resident owners of residential properties will be removed.
Liam Bailey, Head of Knight Frank Global Research, comments…
Tax is not the primary driver for the majority of international buyers of residential property in London. We anticipate that the removal of the CGT exemption for non-resident purchasers will have only a marginal impact on demand and pricing.
It is important to note that the change to CGT rules brings the UK in line with other key investor markets, such as New York and Paris where equivalent taxes can approach 35% - 50% depending on the owner’s residency status.
As we noted in our recent report on International Buyers in London, while non-resident purchasers account for 28% of central London property purchases, their share of the wider Greater London market is far smaller at around 12% of all new-build property purchases in Greater London at the current time.
Courtesy: Knight Frank
Lizzie Copestake - Country PR Executive
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