Some individuals may wish to restructure their property ownership in order to avoid new taxes but this is not always going to be necessary.
London, UK (PRWEB UK) 19 April 2013
Several new tax rules have come into effect that may affect expats in the UK and Europe.
These principally revolve around the UK’s new “Annual tax on enveloped” dwellings.
New rules will affect anyone that owns a property worth more than £2m and is considered a “non-natural person”. In practice a “non-natural person” is often a company.
David Retikin, Director of Operations for Pryce Warner International Group, commented: “While this new rule will not affect many people, it may prove highly costly to individuals and companies that it does affect. Some individuals may wish to restructure their property ownership in order to avoid new taxes but this is not always going to be necessary. Trustees or a company acting as a trustee of a settlement will not be considered corporate entities, and the process of transferring ownership may be equivalent or in excess of the tax.”
The new tax can be up to £140 000 depending upon the value of the property in question.