Foreign owners of property in the United Kingdom will now be forced to pay capital gains tax, Finance Minister George Osborne announced in London last Thursday.
The much-predicted new tax will come into effect from April 2015.
Under current U.K. tax laws only second home owners who are U.K. residents pay the tax, which is typically 28 percent, on any rise in value when they sell a property.
Osborne said the current system was "not right", and comes at a time when there are fears that overseas buyers have been driving up prices throughout the country, but especially in London.
He said: "Britain is an open country that welcomes investment from all over the world, including investment in our residential property.
"But it’s not right that those who live in this country pay capital gains tax when they sell a home that is not their primary residence – while those who don’t live here do not."
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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