New stamp duty in London

New stamp duty in London

The prime central London rental market is being boosted further by another new trend brought about by the increased taxes levied one prime property purchases.

Wealthy families of overseas students coming to study in London, have long purchased properties for their offspring to live in during their studies, both as a way to preserve their anonymity and reduce tax bills. However, thanks to new measures introduced by the government to combat property tax avoidance, many are now choosing to rent instead of buy. In fact, lettings agents in the capital are reporting a surge in demand for rental properties worth up to 2 000 000 pound sterling from the families of overseas students.

As well as introducing a new top rate of stamp duty at 7% for all homes over 2 000 000 pound sterling, the government recently brought in a 15% levy on residential properties costing 2 000 000 pound sterling or more and bought through a company structure.

 

Source: http://www.ipinglobal.com/ipin-live/406598/rich-overseas-students-fuel-prime-london-rental-surge