Received an email yesterday morning – GBP dropping to USD – my broker doesn’t know why.
Had a read through Internet sites and nothing ‘apparent’ happening except the budget. So dutifully do a bit of reading – hate reading about bloody tax but – had a laugh – a vacuous twat is about to sink the UK property prices
Have mentioned two vacuous and irrelevant twats on my blog – not the condom covered one Cameron – his supposed successor – Osborne.
Just finished reading his budget – so if you were wondering why the GBP started to decline against the USD – capital moves faster than a fart in a vacuum.
Osborne has adopted his political opposition’s tax proposal of clamping down on non domiciled property investors.
Shares in house builders and estate agents are nosediving in London after Osborne, Britain’s Chancellor announced a shake-up of the tax system – it will drive non domiciled wealthy foreigners out of the property market.
Well – in fact – take ‘that’ capital away from the UK and it will not be the real estate agents and building companies collapsing, but one can see house prices dropping dramatically, retail sales suffering and all associated industries.
Please remember that these reforms follow a series of changes in recent years that make it increasingly difficult to argue prime residential property is under-taxed.
The relatively subdued nature of the prime London market since December 2014 stamp duty changes – highlights the risk of higher taxation on real estate market demand and also an attempt to increase Government revenues.
As well as the ‘non-dom’ crackdown – property companies haven’t been helped by George Osborne announcing a cut to tax relief for buy-to-let landlords – this market has also been booming in recent years.
If one looks at the amount of money spent by these ‘oligarchs and the like’ from transport through to restaurants and retail sectors the impact will be massive – far in excess of the £1.5 billion in tax revenues. Then you have the buy to let investors tax relief being slaughtered.
The idiocy of clamping down on non domiciled investors amazes me – shooting a tax net at the rich for a lousy £1.5 billion a year.
Do not get me wrong – taxes should be paid in the country that you are domiciled – to be taxed as a non domiciled in a foreign country; in which you have a residence; stretches the good faith of a tax system. Yes pay property taxes and utilities but the taxation net is now to cover incomes.
The capital of these rich is on the move – GBP will suffer – short the currency at your pleasure – if retired then look at a property in UK, later this year, when the full taxable liability starts to sink in to the rich.
What a twat – then again – suppose he has to try and cover his interest expense somewhere – but the interest expense is 100 times the supposed taxation receipts on this money grab, as stated by Treasury.
Osborne’s tax tactics have marked the demise of real estate – his other tax changes do nothing to address the overall debt situation of the country.
The finance industry – operating in a deregulated market in London – is being over hit with a finance levy – far better operating in Hong Kong or Singapore….
Then we have this minimum wage increase for 25 and over – fuck the younger generation – as their education expenses are increasing as well.
Could go on and on – my thoughts on taxation are well known if one reads this blog.
Edit- been asked to provide proof
Berkeley Group is down 6%
Barrat Developments is down 4.4%
Crest Nichols is down 5.2%
Persimmon is down 4%
Taylor Wimpey is down 3.3%
Bellway is off 4.5%
Real Estate Agents
Countrywide is down 2.2%
Foxtons is off 3.7%