Not many people can afford or want to buy a property worth more than £2m. Those that do have usually bought it in a form of corporate vehicle, often based offshore. It is now no longer sensible to do so because of government tax changes.
There are now 3 major disadvantages to doing so;
a. SDLT is now 15% of the purchase price:
b. There is now an annual residential property tax which ranges from £15,000 on homes valued between £2-5m and £140,000 on homes worth more than £20m
c. Capital Gains Tax is now payable when sold.
Don’t you feel sorry for those Russian Oligarchs!
If any reader is potentially affected by these changes and needs advice on how to get the property out of the company vehicle, we can help.
