Labour Councils Teach Us How To Invest In Commercial Property !
Two Labour Councils made investment purchases of commercial property. (Strange when councils are meant to tax us for the provision of local essential services, not for running a property investment business!)
The councils have purchased these properties using offshore companies in Luxembourg and saved £12bn in SDLT. … And its all perfectly legal.
The councils are obviously tax resident in the UK, so how does buying these properties through a Luxembourg company help?
Can anyone shed any light on how this structure works?
Ranjan Bhattacharya
Baker Street Property Meet
Next Meet in Central London, Wed 29th Nov 2017. (200+ People attending)
More info at www.bakerstreetpropertymeet.com
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Member Since July 2013 - Comments: 1997 - Articles: 21
1:05 PM, 13th November 2017, About 8 years ago
Ian, you are getting things mixed up. The Council was criticised for buying the shares and thereby not paying 4% SDLT. The Seller, not the Council, might be liable for CGT if it made a capital gain. Whether CGT was avoided/reduced by the Seller I cannot say but we are going off-topic.