End of the London bubble? Osborne eyes tax on foreign property owners

Chancellor George Osborne has refused to deny that he will introduce a capital gains tax on the sale of second homes owned by overseas investors.

Such a tax could take the heat out the London property market by deterring the flood of foreign investors that are escalating London property prices.

Eight in 10 luxury new-builds in London were sold to foreign buyers during the last two years – largely to Chinese and Far Eastern buyers.

Foreign buyers have in part been attracted to London and South East property investment because they are currently able to sell second properties without paying any tax on profits from the sale.

It is being widely reported that Osborne is set to make the announcement about the tax in his Autumn Statement in December.

This morning Osborne refused to deny reports, telling the BBC: “Well I am only a month off my Autumn statement so I am not going to comment on specific tax affairs – it’s not a leak that comes from anyone near me. […]

“The only reason I don’t want to deny it is because I don’t want to then get into a whole list of other things you are going to ask me about.”