UK Capital Gains Tax Changes

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08.01.2014The UK Chancellor, Mr. George Osborne, announced on the 5th of December 2013 that capital gains tax will be charged on British property sold by overseas nationals and foreign investors. For British expats who have property in the UK and reside overseas no longer will be able to avoid paying capital gains tax on their property of residence in the UK if they do not live there. British home owners currently have to pay capital gains tax if they make a profit when they sell a property that is not deemed to be their main residence. Currently, foreign investors see property in the UK (particularly London and the South East as a safe investment) and are eligible to be tax exempt from capital gains tax will also be imposed to the new tax regime. It is assumed, that foreign investors are creating a housing bubbleby taking advantage of the tax regime. The 28% capital gains tax will be imposed on anybody selling a second home in the UK from April 2015, which leaves a little over a year for anyone wishing to sell to do so without being taxed, for any expats that decide to sell they should be able to avoid paying tax in Cyprus as long as they owned the property before becoming a resident of Cyprus.