Warning over planned tax change

News Article

The Chancellor came under fire last month after setting out changes to taxes applied to non-UK residents selling commercial property.

Following the Budget speech, it was revealed that the Treasury intended to do away with an exemption which means investors from overseas have not previously been liable to pay Capital Gains Tax (CGT).

The adjustment was not widely publicised when Philip Hammond made his financial statement, but was uncovered during more detailed analysis of the accompanying Budget documents.

The British Property Federation (BPF) is among the trade bodies concerned about the impact that the change could have on the property market.

There is also the possibility that the reforms will impact on those infrastructure projects which are heavily reliant on foreign investment.

Ion Fletcher, the BPF’s director of finance policy, said that the change was far from ideal at a time when there was already a good deal of political uncertainty, although other commentators have suggested that the UK’s property market was likely to prove more resilient than some expected.

For more information on how Palmers can assist prospective investors, please contact us.