All posts with the topic: residential real estate

Territorial limitations on the scope of UK taxes open up the possibility of tax free property development. At least this is the case for non-UK residents who can arrange matters such that they avoid a permanent establishment in the UK (for example, a site office or show-home) and are resident in a jurisdiction with a … Continue reading Profits from Trading in and Developing UK Land

SDLT From 1 April 2016, a 3% higher rate of SDLT will apply to purchases of “additional residential properties”. This charge is aimed at those buying residential property for buy-to-let or as second homes. The government states that “some” of the additional tax collected will be used to provide £60 million for communities in England … Continue reading Autumn Statement 2015 – Residential property changes

Continuing the trend of making changes to the taxation of residential property in recent Budgets the Chancellor today announced three residential property tax changes: • Limiting the deduction of finance cost in respect of residential property by individual landlords • Introducing an additional inheritance tax nil-rate band for residential property • Extending inheritance tax for non-doms … Continue reading Residential property tax rollercoaster

Extension of taxation on UK residential property held by non-natural persons As one of a number of measures aimed at tackling tax avoidance, the Government is extending the package of taxes on “enveloped dwellings”, lowering the threshold so that the relevant taxes apply to residential properties worth over £500,000 (rather than only to those worth … Continue reading More changes afoot for taxation of residential properties…

As part of its anti-avoidance strategy the Government has today announced the introduction of amendments to the SDLT legislation to counteract two SDLT avoidance schemes, mostly used in respect of residential property, which sought to take advantage of the SDLT subsale rules. The SDLT subsale rules address the situation where, broadly, a person enters into … Continue reading Retrospective changes to the SDLT subsale rules

There had been speculation that the introduction of the Annual Residential Property Tax, as well as extension of the capital gains charge, would be deferred. But not a bit of it. The new tax and the extended charge will come into force from 1st and 6th April respectively as originally planned. Whilst confirmed today, details on the precise … Continue reading High-value residential property update

In the 2012 Budget, the Government announced various measures to discourage the use of “corporate envelopes” to hold high value UK residential real estate. These measures included a 15% rate of SDLT, introduced with effect from 21 March 2012, for acquisitions of residential real estate by certain “non-natural persons” (including companies) for consideration exceeding £2 … Continue reading Removing property businesses from the 15% rate of SDLT

The Government released further details of the proposed new taxes on UK residential property owned by “non-natural persons” on Tuesday 11 December.   The news   Most of the news is good. The scope of the charges have been restricted. The CGT charge will now only apply to gains accruing after April 2013, and not … Continue reading The pressure’s off to restructure high value residential real estate before Easter

Taxing the rich has been a popular sport recently, both abroad and in the UK. There was every chance that the Chancellor would use today’s Autumn Statement to make another raid on the deep pocketed. Instead, he has (for now) directed most of his attention at tax cheats. Along with the headline-grabbing (but relatively minor) … Continue reading Tax the rich or plug the leaks? Osborne chooses the latter.

A stamp duty land tax (SDLT) anti-avoidance scheme that has been widely used by residential purchasers has been stopped by measures announced in the Budget. The scheme broadly involved the purchaser granting an option simultaneously with completion of the acquisition of the property to an unconnected third party, exercisable many years in the future.   The … Continue reading More on the sub-sale and other general SDLT anti-avoidance measures