United Kingdom

Details

  • Service: Tax, Personal Tax
  • Type: Press release
  • Date: 05/12/2013

Autumn Statement 2013: Capital gains tax 

5 December 2013

 

Commenting on today’s announcement in the Autumn Statement that owners of UK property living abroad will become subject to capital gains tax, Daniel Crowther, tax partner at KPMG, said:

"The Chancellor has today reversed a near-50 year old policy: since capital gains tax was introduced in 1965, UK tax rules have encouraged overseas buyers to invest in UK property with the ability to make any gains tax free.

 

"The same tax break has always allowed long term British expats to sell their old UK homes free of capital gains tax beyond the normal exemption for main residence. The UK is now going to remove residential property from this tax break from 2015, aligning the UK with many other countries.

 

"This will likely lead to a reduced appetite for top end UK residential property. It is also possible that current overseas and expat owners will look to dispose of property before 2015, which could temper prices and lead to more houses being put up for sale, both of which could help cool the housing market generally.

 

"Ironically it may also encourage overseas investors to acquire properties being sold within offshore companies once more by swapping capital gains tax for the potentially cheaper alternative tax on ‘enveloped dwellings’ brought in last year." ' 


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Follow us on twitter: @kpmguk #AS2013

 

www.kpmg.com/uk/autumnstatement

 

For further information please contact:

 

KPMG Press office

 

Tel:  +44 (0) 207 694 8773

 

Mark Hamilton, KPMG Corporate Communications

 

Mobile: 07785337672 

 

mark.hamilton@kpmg.co.uk

 

About KPMG:

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across

the UK with over 12,000 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.

 

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Mark Hamilton

Mark Hamilton

Senior PR Manager - Audit, People & Corporate Responsibility

KPMG in the UK

020 7694 2687

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