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Commercial property remains outside scope of UK Budget

Posted on in IQE Isle of Man

For Isle of Man corporate service providers, the UK budget has some interesting announcements, particularly in relation to UK residential property.

An immediate rate of 15% Stamp Duty is now payable on new purchases of UK residential property by a "non natural person" (eg a Company) with a value in excess of £500,000.

In addition, two new tiers have been introduced for Annual Tax payable on certain UK real estate owned by a non natural person. Applicable residential properties with a value of between £1,000,000 and £2,000,000 will be subject to the Annual Tax with effect from 2015 and those with a value of between £500,000 and £1,000,000 will take effect from 1st April 2016.

Steve McCafferty, Director of IQE Real Estate said "the UK property market is a key asset class for international investors who continue to acquire high value properties through corporate vehicles and trusts.  Whilst there has also been a consultation announced extending Capital Gains tax to non UK residents disposing of UK property, importantly, from an Isle of Man perspective, certain rental, development and commercial properties continue to remain outside of the target catchment, which is very positive for our international client base who remain active in these sectors".

A number of anti avoidance measures were also announced, some affecting Group corporate structures and as anticipated, the taxation of remote online gambling will change from 1st December  2014.  Additionally, IQE will be closely monitoring a new consultation for Horserace Betting Levy, which may apply to our gaming clients.

Further information on these and other announcements will follow on release of the Finance Bill 2014, due shortly.

We have the expertise to assist with multi-jurisdictional fiduciary services for international structures

Simcocks Advocates have worked closely with IQE on both real estate and other private and commercial transactions over a number of years, and from our experience, IQE always strive to deliver the highest standards of service to both private and corporate clients alike. Their attention to detail, strong work ethic and listed corporate governance experience set them apart from other service providers. Phil Games, CEO, Simcocks Advocates Limited

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