No tax expert, but.... I think foreign companies owning uk property (employed by foreign companies and uk individuals who didn't want to pay capital gains tax on non-primary homes so transferred ownership to a foreign company, which they in turn owned) has been stopped in its tracks by the ATED tax. Annual Tax On Enveloped Dwellings, applies a blanket annual tax on anything valued over £500k and owned by a foreign company. I also understand that Capital Gains Tax is being extended to all foreign owned property (personal or company owned). So, in my opinion, it's more of a home grown problem we have with uk nationals jumping on the buy-to-rent bandwagon thanks to low interest rates and high rental returns. This focusses the risk on to rises in interest rates as these individuals are, by their nature, risk takers and are banking on maintaining low interest rates and increasing property values. So many people want to be property landlords because they think it's easy money and they will stretch themselves to achieve it. It's not easy money though, it's a very risky strategy. A wise man once said, 'when everyone is blindly heading in one direction then perhaps you should go another route'.
Lorne Gifford ● 3475d