Exodus: Brexit for the Poor – Tax For The Rich.

As I understand it, the Government have made it so that it is no longer tax efficient, from April, for wealthy foreigners to retain residence in the UK.
So, according to City AM & the FT , they will be leaving in their droves.

When they leave, they will defacto sell their UK property holdings and presumably some of their investments. When they do that, it will have a knock on effect on prices in the South East, making property somewhat more affordable. That would be great for Londoners who can’t afford to get on the property ladder but not so good for those who remember foreclosures through “negative equity!”.

In addition to that though, it will also mean that they no longer employ the help, buy the cars, the clothes, the houses, the furnishings or live the A lister lives or indeed pay tax at all. (I wonder what will happen to Chelsea FC?).

Just now we can’t even guarantee that our run of mill foreigners will stay.

London’s income’s not going to soar – how can it?

I wonder if HMRC will be better or worse off? And if it’s worse off (which is highly likely) – won’t that mean more taxes for us?

Source:
CITYAM
FT

 

 

What is happening to property in the UK?

George Osborne changed the law so that private Landlords could incrementally no longer claim interest relief on their investments.
Sounds technical until you realise that if you make £10,000 a year in
rent, you might previously pay say £7,000 in interest then (ignoring agents & maintenance) pay tax on the balance – £3,000.
In 4 years time (25% per year) you will pay tax on the £10,000 then you will pay your interest, then there will be a shortfall then you will most likely have to sell your rental property. And that will happen accross the board, with our levels of gearing, which will lead to many repossessions and a gargantuan property crash – or am I missing something?

Source:
FT
The Guardian