Tax issues for expats transferring property to an overseas company

by Readers Question

11:50 AM, 6th February 2014
About 7 years ago

Tax issues for expats transferring property to an overseas company

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Tax issues for expats transferring property to an overseas company

I am an expat, renting out my former residence in the UK. I am considering ‘donating’ the property to an off-shore company in my name. This is because CGT for expats is under review. I would do a ‘donation’ as opposed to outright sale because the country I reside in right now has global taxation rules and only a donation would be tax-free from their point of view. I assume borrowing by an off-shore company is very hard, so I can consider paying off the loan.

What are the implications of lettingn a house owned by an off-shore company ? Would I use the same AST contracts, would the insurance be the same, etc ?

How about the tax implications of the ‘donation’ step ? Would the off-shore company still pay stamp-duty (remember this is not a sale, is a donation). Tax issues for expats transfering property to an overseas company

On this issue of the review of the expats taxation, has anybody any feeling what are they going to do ? I guess there are many Brits living abroad and renting our their former UK residence, are the new rules likely to make any difference between a property sold by a Brit retired in Spain and a rich Hong-Kong guy who made a few millions buying and selling a Chelsea pad he never lived in ?

Help and views would be appreciated.

Thanks !

Christian


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Comments

Mark Alexander

12:10 PM, 6th February 2014
About 7 years ago

Hi Christian

The ownership of the property certainly won't affect any tenancy laws, I'm not so sure about insurance so please check but I would not expect there to be any problems. See >>> http://www.property118.com/landlords-insurance-landlords-buying-group/ as we can now GUARANTEE to beat any like for like renewal quote 🙂

With regards to the tax issues, PLEASE do not take advice posted on the internet as gospel and please remember that people may well intend to be helpful but can so easily be wrong. For a transaction of this nature it would be foolish to take advice from anybody who is not qualified and fully insured to provide it. I recommend you talk to this guy - http://www.property118.com/member/?id=452
.

Colin Childs

18:27 PM, 8th February 2014
About 7 years ago

Questionable whether you are donating or in reality transferring ownership. Nor is the transaction at arms length. So could be described as contrived. The proposed transaction raises more questions than answers. That would require the services of an expert in the field.


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