CGT on off-shore companies

CGT on off-shore companies

Didn't find your answer?

   An overseas client (non UK domicile and non UK tax resident) wishes to buy  a house in London for £2.5m for investment purposes. His intention is to rent it for a year or so and if the value goes up, sell it. 

  Should he buy it under an off-shore company or under his own personal name ?

Replies (1)

Please login or register to join the discussion.

avatar
By taxhound
23rd Mar 2014 16:05

offshore company...

If he purchases via an offshore company, he will need to be aware of the ATED rules including SDLT at 15% rather than 7% (from which he might get an exemption if he is letting it commercially).

http://www.hmrc.gov.uk/ated/basics.htm

He also needs to be aware of s13 TCGA92

http://www.hmrc.gov.uk/manuals/cgmanual/cg57200+.htm

and also, depending on how he funds the purchase, the transfer of assets abroad rules

http://www.hmrc.gov.uk/manuals/intmanual/intm600010.htm

Amongst other things....

 

He needs advice from a specialist in this area.  It is complex.

Thanks (1)