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-   -   Buying a UK house 'offshore' (https://britishexpats.com/forum/sand-pit-116/buying-uk-house-offshore-735083/)

Millhouse Oct 9th 2011 5:11 am

Buying a UK house 'offshore'
 
Has anyone here had any experience of buying a UK house through an offshore company?

I know rental income would taxed but the main point from my mind is that I don't want to be deemed onshore (and therefore subject to income tax) by virtue of house ownership.

Any idea how easy it is to sell the thing through an offshore vehicle in case it turns out owning a house in the middle of no-where isn't my thing after all?

Millhouse Oct 9th 2011 5:23 am

Re: Buying a UK house 'offshore'
 
I found my answers. In a nut shell, it's probably a bad idea.

flares Oct 9th 2011 5:24 am

Re: Buying a UK house 'offshore'
 

Originally Posted by Millhouse (Post 9665430)
I found my answers. In a nut shell, it's probably a bad idea.

why?

shiva Oct 9th 2011 5:27 am

Re: Buying a UK house 'offshore'
 

Originally Posted by Millhouse (Post 9665430)
I found my answers. In a nut shell, it's probably a bad idea.

Considering that almost all of Londons top end property is now bought and sold by offshore entities it can't be a bad idea in some circumstances

Millhouse Oct 9th 2011 5:38 am

Re: Buying a UK house 'offshore'
 

Originally Posted by saudiflares (Post 9665431)
why?

if you ever go and live it in (even if just your family) - then it would be deemed a benefit in kind and therefore taxable.

Millhouse Oct 9th 2011 5:39 am

Re: Buying a UK house 'offshore'
 

Originally Posted by shiva (Post 9665437)
Considering that almost all of Londons top end property is now bought and sold by offshore entities it can't be a bad idea in some circumstances

This is true. The idea isn't dead in the water yet for sure. I'm still looking into it. You do save the stamp duty...

csdf Oct 9th 2011 6:13 am

Re: Buying a UK house 'offshore'
 

Originally Posted by shiva (Post 9665437)
Considering that almost all of Londons top end property is now bought and sold by offshore entities it can't be a bad idea in some circumstances

The owners are probably not UK domiciled, though, whereas Millhouse presumably is.

shiva Oct 9th 2011 6:24 am

Re: Buying a UK house 'offshore'
 
hadnt thought re domiciled.

you could of course rent it for a nominal amount from the caymans based trust that you have nothing to do with at all

Norm_uk Oct 9th 2011 7:42 am

Re: Buying a UK house 'offshore'
 
Buying in the UK via an offshore company if you're planning to live there makes little sense for reasons already stated.

For people who own property in the UAE though and perhaps elsewhere having your home owned by a company helps reduce the risk of running into inheritance and/or frozen assets problems which are common in the region.

The Revenue are really tightening up on expats who have assets back home and wherever they may be. Unless you are buying purely for investment and have zero intention of even seeing the place it's probably not a good idea to try and save a few quid on tax buy setting up companies and all that.

Alternative you could just buy somewhere else where these things aren't so much of an issue - again assuming it's just for investment and not for personal or family benefit.

N.


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