It has been reported in today’s press that London now surpasses New York as the leading city for property investment for foreign investors, according to a survey released yesterday by the Association of Foreign Investors in Real Estate.
If you are a foreign investor looking to enter the UK property market it is important you take UK tax advice in advance of purchasing a property.
We have considerable experience in advising clients on how to structure their property investment i.e. personal ownership versus offshore company and the impact this has on their UK tax position. This advice would include mitigating exposure to income tax in respect of rental yields, Capital Gains Tax ("CGT") applies in certain cases when an asset is sold for more than it was originally purchased. The taxable gain (profit) may be triggered following the transfer of an asset, although commonly this would follow a sale. A number of tax reliefs are available to exempt or reduce the tax that may apply. Basic tax planning may... on a future sale and inheritance tax. We also have considerable experience in advising clients on the impact of the Annual Tax on Enveloped Dwellings (“ATED”) if property has a market value of £2 million or more.
If you are investing in UK property please contact us for an initial consultation.