Britain’s deputy prime minister Nick Clegg has revealed that the Government is mulling to impose capital gains tax (CGT) on sale of British property by overseas nationals and expats.
Clegg said that the plan had been drawn up to ensure that wealthy foreigners who buy and sell British property paid their ‘fair share’.
Under current rules, only UK-residents are subject to the tax. The proposed rate of tax would be 28% on any gain.
Clegg added that the move, which has been considered before by the Treasury, would almost certainly be made in the Autumn Budget Statement on 5 December 2013.
The program is expected to affect approximately five million Britons live abroad.
Clegg added that the Coalition will not pull up the drawbridge to overseas investment, but the wealthy foreigners are not exempt from property taxes paid by Britons.
The new proposals are developed to address issues that a housing bubble is being developed by international purchasers who regard flats and properties, particularly in London and the South East, as a risk-free expense.