EU workers and the 3% LBTT surcharge - I wasn't expecting that!

In order for us to have a thriving economy we have to be able to attract the best people. The Brexit vote possibly sends out a message that the UK is insular nation with an almost arrogant attitude that we can fill these roles with purely our people. It doesn't work like that. If we are to move the economy forward we need to cast our net as wide as possible looking for talent if it does not yet exist in this country.

With this in mind, it looks as it we have shot ourselves in the foot (once again!) with an unintended consequence of the changes to LBTT/Stamp Duty.

For those of you who take an interest in all things property, it will not have escaped your notice that there is now a 3% surcharge on those who want to buy a second property. My understanding was that this was to allow first time buyers a better chance at getting on the housing ladder by penalising those despicable landlords with a 3% surcharge on any properties that they bought. Make it more expensive for landlords to buy - they may be put off - and bingo more properties for the FTB to purchase.

The issue is this.

If you are an EU citizen and are working in this country you will have to pay the 3% surcharge if you want to buy a property to live in - if you have rented out your own property back home. Surely the legislation was not meant to do this! The legislation stipulates that if on the date of acquisition of your new property you have an exitsing property anywhere in the world then you will be liable for the surcharge. That cannot be right!

The knock on effect of this could be that if foreign workers are penalised in this way then their companies my think twice about locating in this country. It is for this reason that the London property market is likely to contract as companies pull out of the London because they cannot attract the best people due to the cost of purchasing a property. Edinburgh could catch London's cold?

Time for a rethink?