Pundits hailed the recent Tory election as the dawn of a new U.K. property boom -- fuelled in part by nonresident investors.
But nonresidents contemplating a bijoux apartment in Mayfair, or a Cornish hobby farm should consider the risks entailed by increasingly harsh rules, warns Charles Goddard, a partner with Rosetta Tax LLP in a recent article for BBNA Tax Planning International Review.
In Tax Problems Ahead for U.K. Residential Property Investors, Goddard discusses a number of red flags for nonresident investors. There are no one-size-fits-all solutions, he writes, but rather, each prospective investor must tally the costs and benefits based on his particular circumstances and concerns, bearing in mind that:
These considerations may prompt even the most committed Anglophile to pause for thought before clicking the ‘Add to Cart’ button on ElegantLondonTownHouses.com. What’s more, the new rules may present even more complicated challenges for nonresidents who have already invested in U.K. property in reliance on a prior, gentler regime. Their challenges are not unlike those faced by the many Brits who secured themselves a little slice of the Med only to beat a hasty retreat upon discovering the regulatory and tax risks of investing in a country where you have no leverage as a voter.
Tax Problems Ahead for U.K. Residential Property Investors, by Charles Goddard, is published in the June, 2015 issue of BBNA Tax Planning International Review, and is available by subscription through the BBNA Premier International Tax Library.
By Joanna Norland, Technical Tax Editor, VAT Navigator
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