Although yesterday's Autumn Statement did not include any
further details about the proposed new tax charges on UK
residential property worth more than £2 million, the UK
Chancellor did confirm that the draft legislation will be published
next Monday 11th December.
We are counting down the hours until then, eager to find out how
'non-natural' owners (or Zombies, as we have come to know
them) of such high value residential properties will be
The new Stamp Duty Land Tax (SDLT) thresholds of 7% for
individuals and 15% for Zombies on residential property above
£2 million were introduced with effect from April 2012 but
the proposed introduction of an annual charge and the extension of
capital gains tax on such properties were the subject of
consultation and will not bite until April 2013.
Will the awaited draft legislation effectively slay all Zombies
or only prevent new Zombies from being created?
We know that many of you have been reviewing your property
portfolios in order to identify any residential property that
might be worth over £2 million. You should also consider any
properties that are just below this threshold (or potentially
likely to exceed this threshold in the near future).
Collas Crill's checklist is a tool to help you assess
structures in which the UK property is held in a company with an
Earlier this year we presented a seminar with UK experts Thomas
Eggar addressing the UK Government's proposed new taxes on high
value UK residential property. The event covered the nature of the
tax changes, effects on client structures holding property through
an offshore company and how those might be
Look out for details of a follow up event in the new year, again
in conjunction with Thomas Eggar, in both Guernsey and Jersey.
With our expertise in corporate, fiduciary and UK property law,
Collas Crill are uniquely placed to assist you with property
structuring - so please don't hesitate to contact us.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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