Accountants back Prime Minister’s plans to tax overseas residential property investors

The Association of Accounting Technicians (AAT) a leading professional body with 140,000 members including 4,250 licensed accountants who provide tax and accountancy services to more than 400,000 British businesses, has long called for action to be taken against overseas residential property investors.

In 2017, AAT surveyed their members on the subject, asking, “Should an additional tax be paid on property purchases by overseas investors?” In reply, 78% of respondents said “Yes” compared to just 14% who said “No”.

The organisation subsequently briefed all MPs, including the Prime Minister and Housing Minister, on the subject last year and again contacted all MPs setting out the case for reform this summer.

Following the 18 month campaign, the Prime Minister has this week confirmed the Government’s intention to levy an additional Stamp Duty charge on overseas residential investors.

The Prime Minister, Theresa May MP, said;

“Britain will always be open to people who want to live, work and build a life here. However, it cannot be right that it is as easy for individuals who don’t live in the UK and don’t pay taxes here, as well as foreign based companies, to buy homes as hard working British residents.”

Phil Hall, AAT Head of Public Affairs & Public Policy, said;

“AAT welcomes the decision to impose an additional Stamp Duty charge on overseas residential property investors. This isn’t going to solve the housing supply problem but it’s a sensible and measured response to an increasing problem that will also raise £40-£120m and add a degree of previously absent fairness to the system.”

 In summing up the problem, Hall added;

“Put simply, it doesn’t matter how many houses are built in the UK, there will never be enough to meet demand because demand is not simply coming from the 65m currently resident in the UK but from across, Europe, Asia and America.

 Years of London property purchases by the super-rich from Russia, China, America and various other countries are well documented but it’s not just London that overseas investors are setting their sights on. Liverpool, Manchester and other parts of the UK are proving equally attractive.

 What’s more, it is no longer the super-rich alone who are snapping up properties across the country. Middle income earners from across the world, especially China, Malaysia and Singapore, are finding UK property an increasingly attractive proposition – even more so since the weakness of sterling following Brexit.”

AAT also highlighted that other EU nations already impose restrictions on overseas property investors (Poland, Denmark, Hungary) and that Iceland, Australia, New Zealand and Singapore prevent, restrict or tax overseas property investment, demonstrating that such measures can be successful.

Kindly shared by AAT