Commenting on the changes to capital gains tax and rules relating to foreign investment in the housing market announced in the 2014 budget, Simon Hughes, Member of Parliament for Bermondsey and Old Southwark, said:
I am delighted to see that after months of campaigning from Liberal Democrats, the Chancellor has decided to implement further measures to make sure that foreign investors in our housing market cannot avoid paying their share of tax.
These measures will stop individuals placing property in corporate envelopes to avoid paying stamp duty land tax, by introducing new lower tax bands and therefore capturing a greater number of investors and purchases. The lower band of Annual Tax on Enveloped Dwellings will bring properties valued at £500,000 into the charge, and help to reduce the number of homes that are bought and left empty by investors whilst avoiding paying tax.
The introduction of capital gains tax on future gains made by non-UK residents who are disposing of UK residential property is also a huge win for Liberal Democrats.
These two announcements mean that we are now moving closer towards a tax system where everybody will pay their fair share, and begin to put the brakes on foreign investors pricing local residents out of the London housing market.