Autumn Budget - Exodus vs Opportunity
With the government’s Autumn budget fast approaching, founder of Pimlico Plumbers; Charlie Mullins has recently told GB News that “he is moving overseas” to “protect his assets for him and his family”
Mullins is moving to Spain and claims: “I will not be coming back when Labour are in power, and with their stupid, idiotic tax laws.”
This public barbed attack on the current Labour government from the renowned business owner may be a signal to others, that with the current Labour government in power, exiting the UK may prove the only way to avoid their new (proposed) future tax laws on inheritance tax and capital gains tax.
However, if this proves to be the case, and HNWI’s choose to sell up and relocate to warmer (and more tax friendly) climes, we at OQO believe there is a window of opportunity for those looking to snap up properties in the heart of Prime Central London.
These individuals will be freeing up real estate assets that are rare to the market and have been part of a wider property portfolio, unavailable until now.
Charlie Mullins is selling his £12 million London penthouse overlooking the River Thames as he prepares to leave the UK to one of his three properties in Spain.
As assets begin to be liquidated in London and the clock potentially ticking before the new taxes come into play, NOW is a unique opportunity to purchase trophy assets in London as these individuals look to quickly off-load and sell-up.
The labour government will not stay in power forever and with the property market always moving in cycles, this could be the ideal opportunity to purchase one of these properties.
Many second-home owners are also now desperate to sell before the government announces their plans.
CGT on second homes and rental investment sales is 18 per cent for basic rate taxpayers and for higher and additional-rate payers it is 24 per cent on any gains, but in what is being construed as Labour’s war on second homes, that rate is likely to rise in line with income tax at 40 to 45 per cent, in line with income tax.
Asking prices of some highly sought-after second homes and buy-to-let properties have fallen by as much as 10 per cent in recent months as sellers try to attract interest in their properties.
This a great buying opportunity as there is a strong supply of people wanting to sell; particularly those who own buy-to-let property or second homes. Some are open to negotiation to drop prices by thousands of pounds because they are concerned about how they will survive new Landlord rules and expected tax hikes coming in.
In terms of future investment, OQO can source these properties, who’s owners are under increasing pressure to sell, and negotiate the best possible price for our clients.
However, if like Mr Mullins, who sold his business for £145 million in 2021, the concept of the Labour governments new tax rises is too much to bear, there are also opportunities in Spain- still topping the list as one of the favoured British expat destinations.
OQO and their trusted partners cover the Kingdom of Spain and can also source your next property if you choose to join the potential exodus!
