There’s no denying that the trials and tribulations from the UK, European and Global economies recently have experienced a harmful effect on the entire property market in britain plus the marketplace for overseas buyers. There have been alterations in the tax laws governing UK property ownership and these changes specifically affect non-British property owners. Despite these factors, London is still a preferred area for international investors to get property but what has actually changed recently and how will that affect the desirability of buying the top london, uk property market in the years into the future?
International buyers from Russia, China, Japan as well as the USA will tend to be high value individuals who are prepared to pay a premium (whether in property prices or even in fees and taxes due) to be able to own a home working in london. That is not to state that they will not have access to a well thought out tax plan to be able to minimise their liability to tax in britain but it’ll not be a deterrent to owning property there. Minimising tax liability can be a component from the tax planning of companies from small one-man bands to major enterprises and high value individuals so will not be new things to anyone considering buying the London Property Investment opportunity.
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 via an offshore company, the location where the name of the people could be anonymous, then the rate of Stamp Duty Land Tax (SDLT) greater than doubles to 15%. People who are not British citizens are also likely to other taxes when running a UK property including the Annual Residents Property Tax (ARPT), even though this is not applicable to real estate investors who aren’t surviving in their home. Additionally there is a liability for Capital Gains Tax (CGT) that need considering when the property is subsequently sold, that isn’t relevant to British buyers’ main residence. Prime London property has continued to go up in value so CGT can be a major consideration for just about any property purchase of the UK by overseas buyers or UK nationals.
But exactly how does the prime London market match up against other countries with regards to property investment for overseas buyers? Well, it really is broadly similar to some Countries in europe and to america and in countries the location where the tax regime is more favourable, those countries don’t offer the appeal of running a house working in london with its cultural highlights and political stability.
The united kingdom property market could be changing on the face of it but ultimately London will always attract the rich overseas buyer and figures suggest there is no reason to doubt that its popularity is not going to continue. High value men and women will often be interested in the UK’s capital city as well as the cachet of running a property here. Most are now even able to secure large mortgages through specialist London mortgage brokers.
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