In his Autumn Statement, chancellor George Osborne said while overseas investment in residential property is welcome, non-UK residents selling properties in the UK must pay a levy on any gains.

In a second move, the government is halving the CGT exemption period for all homeowners.

Under HM Revenue and Custom rules, the final three years of property ownership currently qualify for relief.

The relief applies even if the owner does not live there during the three years before they sell the property.

It must have been their only or main home at some point during the time that they have owned it.

In addition, in every tax year most homeowners who are liable to pay CGT receive an annual tax-free allowance – known as the ‘Annual Exempt Amount’.

Property sellers only pay Capital Gains Tax if their overall gain for the tax year is above this figure.

Delivering the Autumn Statement, Osborne raised GDP expectations for 2013 to 1.4%, well above the 0.6% predicted by the Office of Budget Responsibility in March.

Looking further ahead, he also raised GDP forecasts for 2014 from 1.8% to 2.4%.