The following Tax guidance note Produced in partnership with Charles Goddard of Rosetta Tax provides comprehensive and up to date legal information covering:
FORTHCOMING CHANGE relating to non-residents buying residential property and SDLT: Following an announcement at Budget 2018, the government has consulted on introducing an SDLT tax surcharge of 1% for non-residents buying residential property. The consultation is closed on 6 May 2019. For more detail, see News Analysis: Reforming SDLT—the government consults on a non-UK resident surcharge.
Owners of UK property may choose to hold their property through a company incorporated and resident for tax purposes outside the UK (referred to in this Practice Note as a non-UK company). There may be a number of non-tax reasons for this, including:
regulatory reasons, or
preventing information as to the ownership of property from becoming public
However, tax is often a contributing factor and non-UK companies used to be (prior to 6 April 2019) an effective vehicle, particularly for non-UK resident investors investing in non-residential property.
A key exception to this was in relation to residential property, where three key legislative changes made holding UK residential properties through offshore structures much less advantageous as compared with other structures.
The first of these was the introduction, with effect from April 2015, of a charge to capital gains tax (CGT) for all non-residents on disposals of UK residential properties. Only a gain accrued since 5 April 2015 was subject to the charge to CGT and reliefs generally
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234