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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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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