On 25th of February Jack Simpson wrote in inside housing, According to him,
The mayor of London has proposed for new legislation that would allow associates of Russian President Vladimir Putin to have their homes in London taken.
In response to Russia’s invasion of Ukraine, Sadiq Khan has stated that he wants stiffer levies and penalties imposed on those associated with the Kremlin who have purchased homes in the city.
According to Transparency International UK, Russians with ties to Mr Putin and the Russian government possess roughly 100 properties in London worth £1.1 billion. Russian oligarchs are increasingly purchasing property in London, often as a means of concealing their wealth.
Mr Khan is calling on the government to increase the amount of money that overseas buyers must pay for leaving their home unoccupied, as well as increase capital gains tax from 20% to 40%.
By raising the annual tax on enveloped residences, the mayor would like to see an increase in taxes paid by foreign corporations investing in property. This is a tax levied on foreign corporations with property worth more than £500,000.
The mayor’s office has stated that these rules will only apply to citizens who live abroad and not those who live in London permanently, and that this will be determined by a residence test.
According to City Hall’s analysis, this could raise up to £370 million each year, which the mayor says could be used to build 2,500 new council houses.
“For far too long, politicians have turned a blind eye to oligarchs exploiting our capital’s properties as a safe haven for their money, which is harming both our international reputation and our local property market,” Mr Khan added. It is now or never to take action.
“Foreign investment and the millions of individuals from all over the world who choose to call London home will always be welcome.” However, we must take aggressive measures to require a higher contribution from overseas buyers, crack down on those who try to take advantage of our openness, and invest the money in social and other low-cost housing for Londoners.”