Some property experts said the tax changes would put foreigners off buying UK properties. As well as losing tax relief on their debt repayments, they will now face the prospect of paying corporation tax on the profit they make when they sell their properties. Currently, as a non-UK resident company, such capital gains are tax exempt.
International investors are also likely to be “annoyed” by new plans announced in the Budget to give local authorities the ability to charge up to 100% extra for council tax on unoccupied homes.
But John Collier-Wright, whose firm JR Capital buys properties in London for Middle Eastern investors, said the move would not deter buyers.
“Property taxes here are much lower than most other countries, so an increase from £2000 to £4000 on an average home in central London won’t be a big deal… It’s just annoying,” he said.
Becky Fatemi at West End agent Rokstone, also pointed out it will be tough "to monitor which properties are empty and which are not”.
