The acquisition and taxation of UK residential property has become an increasingly complicated area in recent years leading to much greater taxation and compliance burdens. Advisers will need to consider the different options for both structuring and financing the ownership of UK residential property. With third party borrowing, it is not uncommon for lenders to require borrowers to provide offshore assets as security or collateral for loans. However, this can expose non-UK resident borrowers and UK resident remittance basis users to significant UK taxes if care is not taken. While the funding of UK property purchases and offshore structures with bank debt has traditionally been an attractive option, the increasing cost of borrowing mean that it may now be sensible to consider other options.
Kyra Motley and I recently penned an article for The Tax Journal which details the different options for both structuring and financing the ownership of UK residential property.
The piece touches on:
- the different ownership options for UK residential property including corporate, personal and trust ownership;
- the financing options to fund UK property purchases and offshore structures;
- the collateral trap;
- the Trust Registration Service; and
- the Register of Overseas Entities
Read the full article from The Tax Journal here.