Obtain the latest information on tax planning for property, buy to lets, working overseas, non-resident and offshore tax and much more - see site for more info now!Obtain the latest information on tax planning for property, buy to lets, working overseas, non-resident and offshore tax and much more - see site for more info now!
HomeFree Tax HelpJoin Today For £1.00SearchMember Area
 Not A Member?
Sample Articles
Sample Q&A's
Join Today For £1.00
 most popular
Free Tax Books
Ask A Tax Question
Latest Q&A's
Latest Articles
Tax Calculators
Search
 Our Tax Experts
Our Experts
 Tax Help
Free Tax Help
Free Tax Return Help
Latest Tax Q&A's
Gold Members Resources
 Non UK Domicile Tax Planning
Non Dom Articles
Non Dom Tax Q&A's
Non Dom Books
 Non Resident Tax Planning
Non Resident Articles
Non Resident Q&A's
Non Resident Books
Statutory Residence Test
 Company Tax Planning
Company Tax Articles
Company Tax Q&A's
Company Tax Books
Income Tax Articles
Income Tax Q&A
Income Tax Books
Inheritance Tax Articles
Inheritance Tax Q&A
Inheritance Tax Books
CGT Articles
CGT Q&A
CGT Books
 Offshore Tax Planning
Offshore Tax Planning
Double Tax Treaties
Emigration
Tax Havens
Working Overseas
Offshore Tax Books
 Tax Planning With Offshore Companies
Offshore Company Articles
Offshore Companies Q&A
Offshore Company Books
ATED for Companies
 Property Tax Planning
Property Investment
Overseas Property Tax
Private Residence Relief
Stamp Duty
Property Tax Books







home | Old Articles | Transfer UK property to offshore com . . .

Access Our Latest Resources:

Latest tax articles
Sample Articles
Tax questions and answers
Sample Q&A's
tax forum
Tax Forum
tax calculators
Tax Calculators
free tax books
Our Tax Books

Transfer UK property to offshore company - UK CGT & stamp duty?


Question:

I want to transfer a UK property from my name to an off shore company that I own, will this be exempt from stamp duty and CGT. I propose transferring it for nil consideration

Answer:

The transfer of the property to the offshore company would be a disposal for CGT purposes. Therefore on the basis you are UK resident the transfer would be chargeable to UK CGT.

The fact that you are transferring the property for nil consideration would not be an issue as you would be classed as connected to the company. As such the transfer would be deemed to be made at market value. Therefore the gain would be calculated as usual with the annual exemption offset (if not otherwise utilised) and the remaining gain charged at 18%.

In terms of stamp duty, usually this is based on the actual disposal consideration. If the property was gifted there should be no consideration and therefore no Stamp Duty (Land Tax) charge.

However if the transfer is to a company there is a special provision which provides for stamp duty land tax to be charged on the market value of the property where:

  • a company purchases land from a person with whom it is connected
  • some or all of the consideration consists of the issue or transfer of shares in any company with which the vendor is connected

    Therefore if you received shares in the company the market value of the property transferred could be assessed to stamp duty land tax. Ensure that you take detailed advice on the stamp duty issue, preferably from a solicitor experienced in property conveyancing.

    About the Author

    Lee Hadnum
    The Author of this article is our site Editor, Lee Hadnum. Lee is a rarity among tax advisers having both legal and chartered accountant qualifications. After qualifying a prize winner in the Institute of Chartered Accountants exams, he also went on to become a chartered tax adviser (CTA).

    He worked in Ernst & Youngs Entrepreneurial Services department for a number of years before setting up his own tax planning practice. He is now a full time tax author.

    Google+

    WPR Tax Books
    FREE DOWNLOAD - Company Tax Planning Handbook 2015/2016FREE DOWNLOAD - Company Tax Planning Handbook 2015/2016
    23/01/2015
    This book looks at a number of tax planning issues for company owners and considers both corporate and personal tax planning opportunities available. It is updated for the latest changes for 2015/2016 . . . keep reading

    FREE DOWNLOAD - Tax Planning With Double Tax Treaties 2015+FREE DOWNLOAD - Tax Planning With Double Tax Treaties 2015+
    17/12/2014
    This guide contains detailed information on how you can use the terms of the UK's double tax treaties to reduce your UK tax liability. It is updated for the latest anti avoidance rules that apply from . . . keep reading

    FREE DOWNLOAD - Tax Planning With Holding Companies: 2015+FREE DOWNLOAD - Tax Planning With Holding Companies: 2015+
    20/11/2014
    Structures such as the "Double Irish" and the "Dutch Sandwich" have gained press attention due to being used by various multinational groups to reduce their effective tax rate. Al . . . keep reading

    FREE DOWNLOAD - Offshore Companies Holding UK Property: 2015+FREE DOWNLOAD - Offshore Companies Holding UK Property: 2015+
    07/11/2014
    In this book we look in detail at precisely how offshore companies owning UK property are taxed, taking account of the tax changes in 2013 and 2014 as well as the planned changes in 2015 and 2016. . . . keep reading

    FREE DOWNLOAD - How To Avoid CGT In 2014/2015FREE DOWNLOAD - How To Avoid CGT In 2014/2015
    24/10/2014
    This book looks in detail at how you can reduce capital gains tax in 2014/2015. The CGT reliefs are one of the main ways that most people reduce CGT. We therefore look at all of the main reliefs in d . . . keep reading

    FREE DOWNLOAD - Royalty Tax Planning 2014: Strategies & Tactics To Reduce TaxFREE DOWNLOAD - Royalty Tax Planning 2014: Strategies & Tactics To Reduce Tax
    17/10/2014
    Royalties present particular and unique challenges when it comes to tax planning. Not only do many companies own intellectual property, writing and selling both printed books and e-books online is b . . . keep reading

    FREE DOWNLOAD - Family Tax Planning Handbook 2014: Strategies & Tactics To Reduce TaxFREE DOWNLOAD - Family Tax Planning Handbook 2014: Strategies & Tactics To Reduce Tax
    06/10/2014
    In many ways one of the simplest ways to reduce tax is to hold assets and split income with your spouse and children/grandchildren. However, whilst there are numerous tax benefits available there ar . . . keep reading

    FREE DOWNLOAD - Tax Planning For Termination PaymentsFREE DOWNLOAD - Tax Planning For Termination Payments
    26/09/2014
    If you're receiving a severance package, ensuring that you qualify for all your available tax exemptions/reliefs is important. In this Gold and Practitioner Zone report we summarise how these will app . . . keep reading

    About the Author

    Lee Hadnum The Author of this article/answer is our site Editor, Lee Hadnum. Lee is a rarity among tax advisers having both legal and chartered accountant qualifications. After qualifying a prize winner in the Institute of Chartered Accountants exams, he also went on to become a chartered tax adviser (CTA).

    He worked in Ernst & Youngs Entrepreneurial Services department for a number of years before setting up his own tax planning practice. He is now a full time tax author.

    Google+

    =============================================================

    Disclaimer

    =============================================================

    i) Please note that the articles/answers contain general guidance only and do not constitute accountancy, tax, investment or other professional advice.

    ii) The contents of this article/answer are for information only and are intended to assist readers in identify any tax planning opportunities that may be available to them. The information contained in this answer is not intended to be a substitute for taking proper taxation advice and should not be relied upon in this way. Always consult a qualified accountant or taxation adviser. Your situation will then be looked at individually and specific advice relevant to your circumstances can be given. The Expert does not accept responsibility for any loss arising as a result of reliance on any information contained in this answer.

    These Notes (and Disclaimer) do not affect your statutory rights in the United Kingdom.


  •  Discussion Forum
    Recent Forum Posts - Practitioners Forum
    • "UK Home" for Statutory Residence Test
    • Entrepreneurs Relief on Foreign shares?
    • Splitting a property into flats - reducing tax
    • Mauritian company to avoid CGT
    • BVI company for online trading?
    • Best way to purchase UK property as a non resident?
    • 30 day B&B rule
    • share dealing by individual
    • UK property owned by Jersey Company managed by UK company
    • W8-BEN
    Search Discussion

    How to reduce tax



    EU Tax Calculator


     TESTIMONIALS
    Here's what our members are saying ...
    "I joined the site after reading an offshore tax guide and was certainly not disappointed. The practical and 'to the point' tax planning has already saved me a considerable sum. I'd recommend this website to anyone."
    Jerry Brown, Edinburgh


    "From my experience, the advice offered by the team at WPR is second to none and compliments what is normally provided by a high street accountant and offers members quality analysis and advice on complicated tax situations both on and offshore.

    I regularly receive a blank look and "I don't know about that" with regard to more imaginative questions and a visit to this site helps me move on. thank you."
    Peter Jones, Germany


    "I've saved £5,659 in CGT by using this site to double check my accountants advice. My wife has also identified further income tax savings of over £2,000 as result of the property tax articles. In our case it's well worth the £10 membership fee."
    Derek Bailey, Birmingham


    I must thank you for the most informative reply to my enquiry. It is so extensive, I intend setting an evening aside to absorb it all.

    Again, thank you for a most useful website.
    RB, UK


    "Well written reports that are clear and insightful. I look forward to reading them every week!
    Natasha Foude, France


    "I have to say your web site is by far the best prepared and most informative that I have seen."
    Elsa Budding, Newcastle


    "I'm planning my emigration and the offshore reports are exactly what I'm looking for. I'll definitely be renewing!"
    Sarah Mather, Reigate, Surrey.


    "The property tax advice service was excellent, and I'd have no problems recommending it to anyone. I received my answer within 1 day and was very pleased with the response
    Robert Saunders, Leicester