Offshore Companies: Tax Efficiency in UK Property Investment
Tax is a major cost for those involved in the property industry, whether they are developers, dealers or investors. The recently announced changes to Capital Gains Tax will have a significant impact on investors in UK property, producing many winners but also many losers. Broadly the winners will be investors, for whom an 18% rate of tax will be a huge saving. The losers will tend to be dealers and developers, as they will see their current 10% rate disappear.
However 18% is not the whole story, as it ignores any tax payable by the company which holds the UK property. The overall rate of tax is still very high, compared with the rates which can be achieved by investing in UK property via offshore companies. Most big players should be able to reduce their tax bill substantially by using such companies in the right way; indeed it is sometimes possible to eliminate all tax on the ultimate disposal. We have produced this Briefing Note which we hope will show you what can be done to minimise your tax and so boost your overall returns. In it we provide an introduction to the problems posed by UK tax legislation and some possible solutions.
For further information please contact: ELSPETH CARSON OR ALEX INNES OR ALASTAIR JOHNSTON
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