Buying property in the United Kingdom
September 5, 2008
Considering an investment in property? Investment in the UK property market has long since been believed to be an excellent return on your cash – as rental income has exceeded both inflation and nominal rates of interest and has proven a good long term investment as property prices have risen steadily over the years and still continue to rise.
The United Kingdom is also a tax haven for non resident individuals and investing in the UK property market through an offshore company can reap amazing tax savings!
The United Kingdom is an excellent location to invest in property – and through an offshore structure the tax liabilities can be reduced – particularly effective if purchasing the property – but also beneficial if transferring your existing property into an offshore ‘umbrella’ structure.
The property will be held in a tax effective jurisdiction (typically a British Virgin Islands or Isle of Man company) and the shares held in Trust for the owner. As the property is owned by an offshore company that is managed and controlled offshore – a number of tax benefits can be applied. The property can also be rented (upon application to the Inland Revenue as a non-resident landlord).
Such benefits of the structure include:
- Zero Capital Gains Tax – on the sale of the property no tax will be paid on the capital gain.
- Zero Inheritance Tax – the property would not pay any inheritance tax in the estate of the ultimate owner.
- Zero Stamp Duty – in certain cases stamp duties on the transfer of the property can also be mitigated.
Income tax arising from the rent of the property may also be reduced against interest paid on a mortgage and other deductable charges.
The structure is suitable for non-domiciled and non-UK taxpayer’s who wish to take advantage of the excellent return of rental income and the potential growth of UK property
Papa Was A Rolling (Offshore) Stone
August 13, 2008
Did you know that some of the famous names in music and film use the benefits of offshore Companies and Trusts to reduce their income tax and protect their assets?
The members of the Rolling Stones (Mick Jagger, Keith Richards and Charlie Watts) utilise the benefits of offshore Trusts to ensure they pay only 1.6 percent of all income earned. They keep 98.4 percent of all their income! (Including from the highest grossing performance of all time - This according to the Dutch documents recently published detailing their tax affairs and the offshore structures involved).
Fantastic news for them - but it’s not only the rich & famous that can utilise offshore structures to save tax. There are many opportunities for an up-and-coming business or moderately wealthy individual to minimise their tax requirements and protect their assets from litigation or economic instability.
While it may not be possible to reduce your tax bill down as low as 1.6 per cent (unless you become a tax nomad and exile yourself from your home country) it is entirely possible for people like you and me to have an offshore Company or Trust within a financial management strategy to reduce taxes, protect your estate
and protect your assests in a legal and confidential manner!
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