International Private Capital Survey 2013/2014
The evolving nature of the UK tax regime for both domestic and foreign buyers
over the last two years does not feature heavily on the list of HNWI concerns. The
introduction of the Annual Tax on Enveloped Dwellings, which targets residential
properties valued in excess of £2 million, when purchased by a “non-person”,
or “wrapper” organisation on April 1 this year, has not impacted on investment
intentions in London according to our advisors of HNWI in our global offices. That
said, the uncertainty surrounding the introduction of the tax and its structure was
far more important to HNWI than the actual financial implications.
EVOLVING UK TAX REGIME - THOUGHTS ON IMPACT OF LONDON
INVESTMENT ACTIVITY
Perceptions of
HNWI towards Manama
UK membership
of the EU suggest Has a significant impact
that the appeal Has a limited impact
of London as Abu Dhabi, Bangkok, Dubai,
an investment Manama, Jakarta, Kuala Lumpurm,
Muscat, Singapore, Tokyo
destination Source: Cluttons, VPC Asia PAcific
will be virtually EU relationship appears immaterial to London’s appeal
unaffected by any The economic and investment backdrop of London is inevitably framed in
part by the UK’s uncertain relationship with the EU. Our offices were asked to
changes to the investigate the views of their HNWI investors on the UK’s position within the EU
and how this might impact on their investment plans. We were surprised to find
status quo, at least that perceptions of HNWI towards UK membership of the EU suggest that the
appeal of London as an investment destination will be virtually unaffected by
in the short term. any changes to the status quo, at least in the short term. All offices, except for
Kuala Lumpur, suggested that HNWI plans for London based acquisitions would
be unaffected if Britain were to either renegotiate its relationship with the EU,
or leave altogether. Even Kuala Lumpur, although erring on the side of caution,
believed that although there would be a significant impact on Malaysia-based
HNWI activity in London, it would be short lived and driven primarily by confusion
surrounding the impact, if any, on the value of sterling.
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