The 2012 Budget saw the Chancellor continue to clamp down on tax avoidance by overseas property investors - with special emphasis on investments by 'non-natural' persons, including companies and partnerships with a corporate member.

Recent developments include changes to Stamp Duty Land Tax (SDLT) for residential properties with particular focus on those owned by a 'non-natural person'. From March 21 last year, an SDLT rate of 7% was due on UK residential properties acquired for over £2m, as part of the 2012 Budget. The Chancellor also introduced 15% SDLT for properties acquired by 'non-natural' persons.

Following consultation, in December 2012 the Government published draft clauses for the 2013 Finance Bill and issued a paper, 'Ensuring the fair taxation of residential property transactions'. As anticipated, in a further attempt to clamp down on tax avoidance by overseas property investors, these proposed the introduction of Capital Gains Tax and annual charges.