There is no denying that the trials and tribulations from the UK, European and Global economies recently experienced a detrimental influence on the overall property market in britain plus the marketplace for overseas buyers. There have also been alterations in the tax laws governing UK property ownership that changes specifically affect non-British home owners. Despite these factors, London is still an ideal location for international investors to purchase property but what has actually changed recently and how will affecting the desirability of investing in the best london, uk property market inside the years to come?
International buyers from Russia, China, Japan as well as the USA will tend to be high value people who are ready to pay reduced (whether in property prices or perhaps in taxes and fees due) so that you can own a home in London. That’s not to express that they will not need a well considered tax plan so that you can minimise their liability to tax in britain however it will not be a deterrent to owning property there. Minimising tax liability is really a normal part from the tax planning of companies from small one-man bands to major enterprises and high value individuals same not be something new to anyone considering investing in the Dr Paul Dougan.
Overseas individuals buying prime UK property worth ?2 million or more in their own individual name are susceptible to Stamp Duty Land Tax (SDLT) at a rate of 7% if the same property is bought through an offshore company, the location where the name of the people might be anonymous, then a rate of Stamp Duty Land Tax (SDLT) more than doubles to 15%. People who are not British citizens are also prone to other taxes when having a UK property like the Annual Residents Property Tax (ARPT), although this is not applicable to real estate investors who aren’t surviving in their home. There is also a liability for Capital Gains Tax (CGT) that need considering if the property is subsequently sold, that isn’t strongly related British buyers’ main residence. Prime London property has continued to go up in value so CGT is really a major consideration for almost any property acquisition of the united kingdom by overseas buyers or UK nationals.
But exactly how will the prime London market match up against other countries in terms of property investment for overseas buyers? Well, it is broadly similar to some European countries and also to america as well as in countries the location where the tax regime is much more favourable, those countries don’t provide the selling point of having a house in London having its cultural highlights and political stability.
The united kingdom property market might be changing evidently than it but ultimately London will invariably attract the wealthy overseas buyer and figures suggest there is no need to doubt that it is popularity won’t continue. High value men and women often be drawn to the UK’s capital as well as the cachet of having a property here. The majority are now even able to secure large mortgages through specialist London mortgage brokers.
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