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Conservatives to raise property purchase tax for non-UK residents

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Conservatives to raise property purchase tax for non-UK residents

 

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FILE PHOTO: Britain's Prime Minister Boris Johnson campaigns in Mansfield, Britain, November 16, 2019. Frank Augstein/Pool via REUTERS

 

LONDON (Reuters) - Foreign buyers of English properties will have to pay a levy of 3% of the purchase value under plans put forward by Prime Minister Boris Johnson’s Conservatives on Friday, aimed at deterring wealthy investors from driving up house prices.

 

The plans form part of the Conservative Party’s campaign to win a Dec. 12 election, which is heavily based around Johnson’s promise to deliver Brexit within months and move on to domestic issues like education, healthcare and policing.

 

Successive British governments, including the last nine years of Conservative rule, have failed to alleviate a long-term housing shortage which has driven up property values and priced many working Britons out of buying their own home.

 

The proposed reforms to Stamp Duty Land Tax - a levy on property purchases - would apply to companies and individuals who are not resident in Britain for tax purposes, and could raise up to 120 million pounds per year, the party said.

 

London’s high property prices and a strong legal system have made it the destination of choice for foreign billionaires looking for a safe place to park their cash, attracting Russian and Middle-Eastern money especially.

 

A Conservative briefing note cited an academic study which showed 13% of new London homes were bought by non-residents from 2014 to 2016.

 

“This adds significant amounts of demand to limited supply, inflating house prices and making it harder for people in Britain looking to get a foot on the property ladder,” the briefing note said.

 

The party said the policy was based on residency, not nationality, and the surcharge would be in addition to existing taxes which already charge higher rates for those who own more than one home.

 

Opinion polls put Johnson’s Conservatives well ahead of the opposition Labour Party, led by socialist Jeremy Corbyn, but the election is hard to predict because Brexit overrides traditional party allegiances.

 

Corbyn launched his election manifesto on Thursday, promising to overturn a system he said was rigged in favour of the rich. His party has promised to raise more than 80 billion pounds from taxes on high earners and corporations.

 

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-- © Copyright Reuters 2019-11-22

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9 minutes ago, lungbing said:

And make them report their whereabouts every 90 days.

Or  if  they  move from the  living room to the bedroom.

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and thats 3% on top of the 3% surcharge they already charge for you or your spouse owning property worldwide

 

that'll be a nice surprise for those running home because they cannot get insurance on their OAs

 

w**kers

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A more effective tax would target the profits made by foreign owners on property sales in the UK, thereby removing the inflationary impact of foreign profiteering in the UK property market.

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Society will get no benefits, it is the politics of envy and short term gain. Billions of pounds will stop coming into the UK economy, construction will fall, many will loose jobs.


Attacking rich people just makes the poor poorer.

 

House prices will go up, as billions invested in new construction will stop. 

 

 It is Venezuelan economics.

 

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Taxing hot black money, property is where the Russians dump their illegal money and London seemed to like the idea.

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2 hours ago, toast1 said:

Society will get no benefits, it is the politics of envy and short term gain. Billions of pounds will stop coming into the UK economy, construction will fall, many will loose jobs.


Attacking rich people just makes the poor poorer.

 

House prices will go up, as billions invested in new construction will stop. 

 

 It is Venezuelan economics.

 

Yeah exactly, we have the same in germany.

 

- It's so <deleted> sucks to be a landlord in germany,

- getting a building permits takes forever, years literally

- you can't build anywhere because MUH FORREST or MUH NEED TO PROTECT THE LOCAL BIRD

- you can't get rid of a tenent,

- the rental yield absolutely sucks

- then there's a bunch of politicans that want to make it even worse, stealing even more of your money as an owner.

 

The biggest german RE company does lousy 1.x% returns per year - yet the politicscum wants to tax them even harder.

 

And then those same dumb <deleted> have the decency to complain why no one <deleted> builds multi family homes anymore, well because it's not worth it - obviously...

 

No one, absolutely no one with the noble exception of the italian mafia which just wants to launder money is building a housing project without projecting returns on their investing. Get a grip suites....

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12 hours ago, zydeco said:

Foreigners buying property in any country than their own should pay a premium. Ought to make this a 15 percent tax. This is one thing the Thais do right, prohibit (or try to prohibit) foreign property buyers. Keep land within the budget of regular Thai people. 

you are joking right

 

for example:  most land is owned, not by the farmers, but by big land "owner" generals & others in the big city...

 

what is wrong for a person, to buy 1 house in HIS name and not some long term con artists, aka THAI WIFE

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A 15% foreign purchaser tax was brought in in Vancouver about 3 years ago. It put a chill in the market at first but I think it's recovered. In some areas like Richmond foreigners were estimated to own 25% of the real estate. 3% is peanuts. 

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16 hours ago, Beachcomber said:

Ah! Dual pricing  - Disgraceful...........................

 

Wonder where they got the idea! 

It is not. Just fair. They are not the only ones doing it in Europe.

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