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Homes Worth Over 2 million pounds!

Newsletter issue - July 2012.

The Government wants to clamp down on tax avoidance by people who purchase their homes through companies, or other structures like trusts or partnerships, (known as non-natural persons). It is proposing new tax charges will be applied follows:

a) From 1 April 2013 an annual charge will apply on the value of residential property worth £2 million of more owned by non-natural persons; and
b) From 6 April 2013 Capital Gains Tax (CGT) will be charged on the disposal of residential property where the selling price is £2 million or more, and the seller is a non-natural person who is not resident in the UK.

There will be an exemption from the annual charge for established property development businesses, but only if the business has been operating for at least two years.

When a UK based company sells a property it already pays UK corporation tax on the gain, similarly a UK based partnership or trust would pay UK tax on any profits it makes selling property in the UK or elsewhere. A company or other non-natural person based outside the UK for tax purposes does not pay UK tax on the sale of a UK property, so the new CGT charge is designed to level the tax playing field with UK-based property owners.

If you own high value residential property within a company or other structure you may want to take steps to remove it from that structure, especially if the company is based outside of the UK. There may well be other issues to consider in removing a property from the structure so please talk to us before taking any action.

 

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Dakins Property Services

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Choice Events Limited

All at Beauchamp Charles are very helpful, approachable and easy to talk to. They keep me informed with key dates; I can feel totally confident that I won't ever miss any deadlines! Whoever I deal with, always deal with matters professionally and efficiently and if they are unavailable they get back to me promptly.

FT leisure Ltd

I have worked with Beauchamp Charles as our management accountants for over 20 years and have never received anything less than exceptional service. Their approach is both professional and personal. Finances and particularly tax strategies are a minefield for small businesses; Beauchamp Charles have in-depth knowledge of these area, which is comforting. They pay very close attention to our business activities and have provided financial strategies that have helped our company develop.

Fredrick Thomas Electrical and Maintenance

We have used Beauchamp Charles since company formation back in 1998. Beauchamp Charles offers us a one to one service as they are small enough to offer this dedicated service and large enough to do the work and offer best advice. They get to know us as individuals and a business, always giving sound advice. Frederick Thomas Electrical are in a stronger place thanks to the service we get from them.

Barnes Walker Landscapes Limited

We are a small business and had employed the same accountancy firm for many years. Two years ago we took the decision to switch to Beauchamp Charles after several othe local businesses recommended them very highly to us. We have not been disappointed with the service they have provided to us over these last two years.