Wedlake Bell’s insights into the issues affecting international investors and traders in UK real estate
UK real estate is in high demand with foreign investors and traders. Ranking as one of the most desirable cities in the world to buy property. In recent years though the demand for UK residential property, particularly in prime central London, has been tempered by the effects of a series of taxes aimed at international property owners; unprecedented political uncertainty following the Brexit vote, and against a backdrop of a global drive towards transparency with the UK trailblazers with the establishment of public registers of beneficial owners. By contrast the commercial property market has remained largely off the government’s radar in terms of significant tax reforms, and although Brexit and increasing transparency obligations have played their part, the international demand of commercial property for investment and trading purposes has continued unabated, not only in London but also in other parts of the UK.
The UK is viewed globally as a safe haven, both politically and economically, and continues remains an attractive proposition for foreign investors. This is through a combination of greater political instability in other parts of the world and a weakened pound sterling brought about by Brexit making UK real estate a more affordable proposition. From the perspective of London, the capital’s cultural richness and diversity as a place to live, work and learn remain key pull factors. It is a draw for international trade, commerce and finance which has always attracted foreign entrepreneurs, investors and employees.
What this all means is that the need for investors and traders of UK real estate to obtain clear and commercially sound advice has never been so important. At Wedlake Bell our expertise across the firm means that we are ideally placed to assist our clients and deliver this advice to those who are investing and trading in UK real estate. Our clients include individuals, trustees, UK and offshore companies, funds and family offices.
The aim of Globally Speaking is to not only to keep our audience up to date with the myriad of changes around the taxation affecting international owners of UK real estate which continue unabated but to also consider the wider issues at play with insight from advisors in our private client, real estate and corporate departments to provide a go to resource for both clients and contacts alike.
Seeking Out the Silver Lining
Amidst unprecedented economic uncertainty, the value of many assets is significantly lower now than what it was in a pre-Covid world. UK residential property is no exception, with property prices… Read more →
IMPORTANT CHANGE TO UK TAX RULES FOR NON-RESIDENT LANDLORD COMPANIES
Earlier this month an important change to the taxation of income received by non-UK resident landlord (“NRL“) companies was introduced. Since 6 April 2020, NRL companies have been subject to corporation… Read more →
Budget 2020 Update
On 11 March 2020, Chancellor, Rishi Sunak’s first Budget, and the first following the United Kingdom’s departure from the UK, contained two tax announcements of particular interest to foreign investors… Read more →
Corb Your Enthusiasm Part 2 – Labour Manifesto Pledges Affecting Property Investors
In this follow up article (pre-election Part 1 here), we take a look at some of the measures in Labour’s recent manifesto affecting property investors. A comparison of the Labour, the… Read more →
‘Corb Your Enthusiasm’: Potential Reforms Under the Labour Government
In this instalment of Globally Speaking, we look at some of the reforms that could ensue if Labour Party under the leadership of Jeremy Corbyn were to enter into power… Read more →
SDLT SURCHARGE PROPOSAL GETS DELAYED AMID BREXIT FALL-OUT
In March this year we reported that the government had published details of its proposal to introduce a 1% Stamp Duty Land Tax (“SDLT”) ‘surcharge’ on foreign purchasers of residential… Read more →
Property, in an alternative asset class of its own
Who said, “Buy land, they’re not making it anymore”? Answer at the end of the piece, for those whose memories fail them… What “they” are making seems to be different… Read more →
NEW TAX YEAR BRINGS AN END TO ATED-RELATED CAPITAL GAINS TAX
6 April 2019 brought in the start of the new tax year and with it yet another change to the taxation of UK property – namely, a widening of the… Read more →
Tax charges for non-resident owners of UK property set to come into force
Government publishes consultation on proposed SDLT surcharge for foreign residential property purchasers
On 11 February 2019, the government published details of its proposed 1% Stamp Duty Land Tax (“SDLT“) ‘surcharge’ for foreign purchasers of residential property in England and Northern Ireland. The… Read more →
Alert! New Tax charges for Non-Residents disposing of UK Commercial Property
Extension of capital gains tax to non-resident individuals and corporation tax to non-resident companies holding UK commercial property At present, non-UK resident individuals and companies holding UK commercial property are… Read more →
The proposed register of beneficial owners for overseas companies
The Department for Business, Energy and International Strategy recently published the government’s response to its “call for evidence” last year on proposals for a register showing who owns and controls… Read more →
Is it time to reform the property tax regime?
Although 2016 delivered a number of political surprises, the UK economy has shown tremendous resilience. However, the one issue that continues to exert influence on the property market is property… Read more →
Landlords must assume tax relief changes will come into force in April
Currently, buy-to-let landlords can deduct their finance costs, including mortgage interest, from their rental profits before calculating their taxable income. This has the effect of reducing the amount of income… Read more →
Property Taxes Are Killing The Golden Goose
The property industry has just been warned by Communities Secretary Sajid Javid to “keep an eye out” for changes to real estate taxation in this year’s Autumn Statement. Change is… Read more →