In view of the fact that rich property buyers in London were easily acquiring tax free properties in London through offshore companies, UK’s Chancellor George Osborne has intervened and clarified that the government would be levying a 15 percent stamp duty charge on homes valued over £2m that are purchased or disposed off through companies.
The government will also extend the Capital gains tax (CGT) net so any house sold via an offshore company is taxed at the usual rate. What is important to note here is that at present non-UK residents are not paying any CGT at all. In addition to this, the government will also levy a new charge on an annual basis on homes purchased via companies. This charge would be approximately £15,000 for homes valued at over £2m. However, this will increase to £140,000 for homes priced above £20m.
Non UK residents who purchase homes via off shore companies will have to deal with the UK tax authorities as well. Prior to this, a Property Buyer who was purchasing a home via off shore companies in this manner was paying very little to own a property in London. The only cost that the buyer was paying came in the form of council tax, which was easily payable.
However, this particular legislation will change the scenario completely. Though property buyers will continue to enjoy inheritance tax benefits, these new charges will definitely put things back in order. So, if you are a property buyer who is willing to purchase a house valued over £20m pounds in the UK via an off-shore company, now is the time to act. On the other hand, if you are a property seller and want to Sell Your House Fast, approach a property buying company today. They can fetch you the right price for your property and assist you with a fast house sale.
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