Clegg: Tax foreign investment in London property

by Calum Fuller

More from this author

19 Nov 2013

  • Comments
nick-clegg

FOREIGN INVESTORS buying up luxury London properties could be hit with new taxes, the deputy prime minister has warned.

As the Autumn Statement approaches on 5 December, Nick Clegg (pictured) said measures could be put in place to address London's price bubble, adding the government's failure to bring in a ‘mansion tax' was the result of Conservative "prejudice".

Clegg confirmed the government is considering introducing new council tax bands and hitting foreign real estate owners with a capital gains tax, the Standard reports.

Foreigners selling second homes in the UK could face a 28% capital gains tax on the sale, he said.

He said there are "parts of the London property market now which are entirely divorced from and dislocated from the rest of the economy - certainly London's economy and even more from the rest of the nation's economy".

He added: "We have a significant amount of property taxes, but - for reasons of history and accident and, frankly, downright prejudice on the part of my Conservative colleagues who simply don't want to ask people in very high-value properties to pay a bit extra - we are saying to hard-pressed families `you have to pay a property tax but someone in a multi-million pound mansion down the road doesn't'. That strikes me as unfair and I think it strikes most British people as unfair. Why should a family in Lewisham pay the same council tax as someone in a vast palace worth several million pounds?"

It is thought the Liberal Democrats will include in their manifesto for the 2015 general election that the income tax threshold will be raised so anyone on the national minimum wage - currently around £12,500 - would be removed from tax altogether.

He said: "I very much hope it is something we can achieve, because as the recovery takes hold I think it is important that we in government should do all we can to make sure that the largest number of people benefit from that recovery."

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Manager / Senior Accountant - ACA or ACCA Qualified

WavelengthWavelength - Northampton - c£35K - £42K

 
 
 
 
 
 
 
 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.