Over recent years there have been changes to the capital gains tax (CGT) treatment of UK residential property held by companies. Further changes are to be made from 2015 and 2016 which will have a massive impact on how non UK residents and many non UK domiciliaries will be taxed on holdings of UK residential property.
On the one hand you have the "ATED related CGT charges" that apply mainly to companies owning UK residential property. These rules are to be significantly extended from April 2015 and 2016. On the other hand the Government is consulting on proposals to introduce a general CGT charge for non UK residents selling UK residential property from April 2015.
In this guide we look at the current CGT position and examine how the changes will apply before looking at the key tax planning opportunities going forward. Key issues covered include:
How the CGT exemption for non-resident companies applies How The ATED and the "ATED related CGT charge" applies Detailed analysis of the ATED changes in the 2014 Budget How to purchase UK residential property after the ATED charges When to de-envelope existing property holdings How non UK domiciliaries should hold UK property Tax structuring tables for UK property purchases How the new CGT charge from April 2015 is planned to apply Different property ownership structures and how they will be affected When it makes sense to purchase personally, via a company or via a trust How UK owner occupied property will be particularly affected Practical planning issues for holding UK property from April 2015 When the new CGT charge won't apply How the "Shadow Directors" rules will affect UK residents occupying UK property The likely overlap between the new CGT charge for non-residents and the "CGT related ATED" charge When to use an offshore trust or double trust structure When to use a nominee structure And much more...