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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Latest Comments

MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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NathanG
NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

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Landlady14
Landlady14 01 Mar 2017

You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

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Mark
Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

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Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

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Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

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James Powell
James Powell 27 Feb 2017

This is a very good news.

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DanHumphreys
DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

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Matt
Matt 20 Feb 2017

Is this fake news?

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Matthew Hollywood
Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

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CommercialTrust
CommercialTrust 30 Jan 2017

Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

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