New Tax Regime for High-value Residential Property
Dwellings valued at more than £2 million held by companies and unit trusts will become subject to a much more adverse tax regime as from April 2013. In particular, an annual charge based on the value
Dwellings valued at more than £2 million held by companies and unit trusts will become subject to a much more adverse tax regime as from April 2013. In particular, an annual charge based on the value of the dwelling will become payable and a sale of the dwelling will be brought within the scope of CGT, even for non-UK residents. It is essential that due consideration is given to moving such dwellings into an alternative structure well in advance of April 2013. There are alternative structures which can preserve most (or possibly all) of the existing benefits that a corporate structure currently provides. Further details are set out in our client briefing paper.