Following Trump’s victory in the US presidential election, there is a lot of curiosity about its implications for the worldwide economy. According to a real estate expert, the fear that capital gains tax might rise in the United States under Kamala Harris has been alleviated with Trump’s win.
UK investors have long favoured the US as a destination for seeking advantageous tax conditions, and there’s been a notable surge in interest among UK residents in purchasing holiday homes there — a trend that’s increasingly viewed as a strategy to safeguard retirement savings.
This trend may very well continue following President Trump’s election. His incoming administration promises to focus on lowering taxes and reducing regulatory burdens aims to create a more stable investment environment and make the US even more appealing to foreign investors. According to UK real estate analysts, these policies should also prompt the UK government to reconsider any further tax increases.
Chancellor Rachel Reeves introduced a 5% increase in Stamp Duty for second home purchases in a recent budget announcement. Capital gains tax rates have also been revised upwards, with the lower rate now ranging from 10-18% and the higher rate from 20-24%. These fiscal adjustments, according to UK property analysts, may lead investors to reassess the attractiveness of UK properties and consider alternatives abroad, particularly the US.
If you are among the investors thinking about investing in US properties, consult with competent property accountants first to fully grasp the implications of your purchase on your tax liabilities as a UK taxpayer. It’s also crucial to understand how American property taxes, zoning laws, and exchange rate fluctuations can significantly affect the final cost of property deals. It’s also important to stay vigilant about changes in US immigration and tax regulations given the potential shifts under President Trump’s administration.
Schedule a consultation with our property accountants at Allenby Accountants today. We can help you start your journey towards successful US property investments.
