Autumn Statement 2013: Capital gains tax

Autumn Statement 2013: Capital gains tax

"It is also possible that current overseas and expat owners will look to dispose of property before 2015..."

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Press Release

Daniel Crowther, KPMG Tax Partner, comments on the Autumn Statement 2013's announcement that owners of UK property abroad will face capital gains tax.

"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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For further information please contact:

Mark Hamilton

KPMG Corporate Communications

M: 07785337672


KPMG Press Office: +44 (0) 207 694 8773

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.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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