Plunging pound prompts US expats to triple UK investment

Plunging pound prompts US expats to triple UK investment

According to research by chartered accountants, Bambridge Accountants, the slumping value of sterling has unleashed a wave of investment from the 200,000 US expats living in the UK.

The firm, which specialises in handling the tax affairs of US citizens living in Britain, has seen a three-fold increase in the numbers of Americans making sizeable investments in the UK since the Brexit referendum.
 
The amounts being transferred range between $250,000 and $500,000, and are typically being used to snap up British property. 90% of investments were used to buy homes for Americans who had been renting in the UK, or – for those who already own a home here – to purchase an additional investment property.
 
The Pound has lost nearly a fifth of its value against the Dollar in the wake of the UK’s vote to quit the EU, making British property substantially cheaper for anyone with funds in the US.
 
American families are getting in on the act too, with many US expats investing in the UK doing so with the aid of contributions from parents and grandparents.
 
HMRC coffers will receive a boost from the flood of American investment in UK property, as expats buying a property not deemed to be their primary residence will be liable for a 3% stamp duty surcharge.


In addition, Americans registered as non-domiciled residents could trigger a greatly increased UK tax bill if they transfer large sums to Britain.
 
Alistair Bambridge, senior partner at Bambridge Accountants, explains: “Sterling’s abrupt fall means that for Americans living in the UK, British property is suddenly on sale. Whether they’re making a permanent home here or an opportunistic investment, buying a UK property now has a compelling logic. But that logic shouldn’t blind them to the tax implications – both here and back home.
 
The reach of Uncle Sam is famously long, and US citizens must complete a US tax return every year – wherever they are in the world. It’s essential that those making investments in Britain report it correctly to both the UK and US tax authorities.
 
Double taxation agreements exist between London and Washington to protect American citizens living in the UK from being taxed twice, but failure to properly declare investments they make here can result in a large fine in the US.”

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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