Property Tax Advice

We provide expert advice on property tax issues for developers, investors, non-domiciled individuals and companies wishing to purchase property in the UK.

Purchasing property in the UK raises important tax issues. In addition to VAT and Capital Gains Tax, Stamp Duty is now a significant issue in itself, requiring careful planning and guidance on how best to structure and document transactions. There is also the issue of anti-avoidance tax rules. These can apply to individuals, trustees and companies seeking to treat property-related profits as capital rather than income in order to pay less tax on disposal.

We offer wide-ranging co-ordinated property tax advice and services for all property investors and developers:

  • Mitigating the Stamp Duty exposure on the acquisition of commercial property.
  • Determining the right structure to ease future disposal of the property.
  • Splitting companies with both trading and property investment activities.
  • Reducing the exposure to VAT as a direct cost and as a compliance burden.
  • Ensuring that full advantage is taken of available VAT reliefs.
  • Extracting property from a trading company prior to sale of the company.
  • Ensuring that capital allowances are maximised and used effectively to minimise tax liabilities.
  • Tax planning for companies and groups undertaking property acquisitions.
  • Overseas acquisitions of property by UK resident individuals.
  • Cross-border property transactions by corporates
  • Special services for non UK domiciliaries
  • Reducing the Capital Gains and Inheritance Tax consequences of acquiring UK property.
  • Minimising UK taxes for non-resident, non-domiciliaries undertaking property development activities in the UK.
  • Structuring holdings of assets to mitigate UK Inheritance Tax, for example via offshore trust structures.
  • Minimising liability to UK income tax on any rental income.
  • Putting in place  “Opting to Tax” and “TOGC” for VAT registrations for buyers for avoiding irrecoverable VAT.
  • UK property investment: use UK or offshore company

    Many non-UK residents prefer to use offshore companies to invest in UK properties as individuals investing personally could have exposure to inheritance and other taxes.  An offshore company is not subject to inheritance tax and capital gains tax can also be avoided but if the structure is not set-up properly, anti-avoidance measures could apply. UK companies investing in UK [...]

  • UK property: “offshore” VAT issues on UK consultants’ fees

    Jersey, Guernsey or other offshore companies are frequently used to purchase UK property.  These companies need to be registered for UK VAT if they will be performing “taxable” activities in the UK such as residential or commercial developments.  These companies will use the services of UK-based advisers such as lawyers, architects and other professionals.  For VAT purposes, the place of [...]

  • UK property: VAT “option” to tax

    A buyer of UK property can “opt” or elect to charge VAT in respect of income earned or to be earned in respect of the property.  Once such an option is exercised or election made, it stands for a number of years.  Under the option the buyer must charge output VAT in respect of taxable supplies made [...]

  • Property tax: Non-resident landlords scheme

      The Non-Resident Landlord’s (NRL) scheme for UK tax compliance Introduction The NRL scheme is a scheme for tax compliance relating to the rental income deriving from properties in the UK belonging to non-resident landlords whether they are individuals, companies or trusts. A non-resident landlord is one whose usual place of abode is outside the UK (anyone [...]

  • Overseas buyer purchasing UK property

    Case study Middle Eastern investors wish to purchase UK commercial property and contracts must be exchanged quickly in order to secure the purchase.  The sellers are VAT-registered. Steps An offshore company can be incorporated within days and this company will be the purchaser of the property. Funds for the purchase are injected into the offshore company. We can apply for UK VAT [...]

  • Furnished holiday lettings

    Properties for Holiday Lettings in the UK – special tax status   Furnished properties situated in the UK which are available for holiday lettings qualify for special tax status. The most important tax shelters  created include:       Availability of capital gains tax rollover relief, business asset taper relief and gifts of business asset relief. For example, if a trader [...]

  • UK resident buying overseas property

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