Foreigners may soon have to pay capital gains tax when selling their British property.

Chancellor George Osborne is reportedly considering the tax as an alternative to a mansion tax in order to help prevent a property bubble from forming in the UK.

According to telegraph.co.uk, he could introduce it in the Autumn Statement this December.

Many ultra-wealthy foreign investors consider London property a safe haven for their riches and this has often been cited as one of the main reasons behind spiralling property prices in the capital.

Lucian Cook, who is head of research at estate agency Savills, believes the introduction of CGT could put an end to that reputation.

Speaking to dailymail.co.uk, he said: “This move could make some foreign investors reticent to buy property in London or current owners reluctant to sell. Following increases in stamp duty of high-value homes and the introduction of associated anti-avoidance legislation, it is very difficult to argue that high-value property is under-taxed.”

Many other EU nations already make non-resident property investors pay a levy on any profits made during property investment.

“Following increases in stamp duty of high-value homes and the introduction of associated anti-avoidance legislation, it is very difficult to argue that high-value property is under-taxed,” Cook added.