UK residential property structures - what are my options?

According to the present or current UK tax regime you will be able to get direct ownership of the residential property. Therefore, there will be no involvement of any trust or corporate structure. Owning a residential property in the UK from a tax point of view is quite convenient. Therefore, you can get the UK residential property under your name far more quickly and at an affordable tax rate than just the company or trust.

Nonetheless, as per the new regime, there are structures where corporate and trust seem to be more accountable. It can offer a wide range of advantages. In the case of limited liability requirements, it will be beneficial to opt for company ownership.

Moreover, apart from the tax reasons, owning a property through trust can be more helpful. It may include estate planning, asset protection and increased confidentiality.

If you are buying a property in Northern Ireland or England, you will be liable for paying the stamp duty land tax on the purchase price. On the other hand, the properties in Scotland and Wales will have similar rules for land transaction taxes.

Earlier, SDLT was easy yet high for the purchase of residential properties. Nonetheless, it can be quite complicated due to the coming in of different rates. The rate would, however, depend on the type of structure you're opting for. As a result, the tax rates will significantly impact your property.

Since SDLT is slightly complicated, it can lead to fluctuations in the price. These fluctuations will completely depend on the type of circumstances. If you opt for SDLT, contacting an accountant is advisable to avoid unnecessary risks in filing the taxes wrong.

The annual tax on enveloped selling is the tax you must pay every year for the privately held company-owned UK residential property. The property must be valued at over £500,000. The taxes will apply to the UK and non-UK residents. The company should file the ATED tax return on time to get a complete valuation of the property under certain conditions.

If you own the property under your name or through a trust, you will not be liable for paying AETD. Furthermore, there will be no requirement for fillings as well. Individuals may associate it with certain expenditures to reduce the overall tax payable on the rent. However, these rules can be quite complex regarding how the finances can be dedicated. It will have a huge impact on the structure of tax that you're following.

Non-UK residents are not liable for paying UK capital gains taxes while selling or gifting the property. However, there has been a change in laws. Different types of taxes are applicable to it, depending on the entity. Here is an overview of taxes on gain based on the entity:

After the death of the owner, the property will be classified under UK inheritance tax. Nonetheless, suppose the individual was not of UK domicile. In that case, they will be flexible to move ahead with the property apart from the inheritance tax, depending on the non-UK company structures. Over the years, there have been significant changes in the rules regarding direct and indirect structures. It is advisable to follow the loan rules to maintain the property.