Autumn Statement introduces changes to CGT for some home owners
In his Autumn Statement, George Osborne confirmed that, from April 2015, all foreigners who own property in the UK will be subject to payment of Capital Gains Tax. Such owners are being given a 15-month window in which to sell up if they wish to avoid the tax. CGT is currently payable at 18% or 28%, depending on the status of the individual.
In addition, UK owners who rent out what was their main home will now become liable to pay CGT on that property within 18 months instead of the current period of three years. This change will take place a year earlier, from April 2014.
The Chancellor said, “Britain is an open country that welcomes investment from all over the world, including investment in residential property. But it is not right that those who live in this country pay Capital Gains Tax when they sell a home that is not their main residence, but those who don’t live here do not.”
The Autumn Statement also included other property announcements. Home owners objecting to new housing developments being built next to them may be entitled to some form of compensation and there is also to be a consultation on allowing developers of small schemes, up to ten new homes, to be let off Section 106 agreements. Calls for the reassessment of Stamp Duty were, however, ignored.