AES International Reviews Changes to UK Property Taxation in the 2014 Autumn Statement
(PRWEB UK) 16 December 2014 -- International financial adviser AES International reviews the UK Government’s Autumn Statement for 2014 and highlights the revisions in tax policies being implemented for the tax year 2015-2016, specifically on how it is going to affect UK property investors.
One of the major reforms proposed by UK Chancellor George Osborne in the Autumn Statement is the taxation system on UK property’s Stamp Duty Land Tax (SDLT), which used to be a slab tax based on rigid property price bands and is now based on an increasing system.
The new system proposes new stamp duty rates, which would decrease tax rates to individuals buying UK property for less than £937,500. On the other hand, those purchasing property that is worth more than this amount would see an increase in SDLT. This has a particular impact on individuals buying property worth £2 million and above, who could pay as much as 12% of the property value as SDLT.
According to AES International Private Banking Executive Nick Michaels, there is more uncertainty in the market in addition to these higher charges, with next year’s UK general election. “A Labour vote could mean even more property charges with the proposed £2m plus mansion tax. This will all amount to significant pressure at the higher end of the market in the short term,” Michaels stated.
Michaels also highlighted how this is going to affect potential UK property investors overseas, saying “Wealthy overseas buyers who drive the market are now facing new capital gains tax liabilities and stricter inheritance tax rules that they have not seen before.”
Carlton Crabbe, Partner at AES International, stressed that these changes underline the need for investors to consider how they buy and hold their UK property exposure. “Should they buy it in their own name, in a company or hold it through a Trust? Tax, privacy and control are all common reasons why structuring UK property should be the first consideration for a UK property investor,” Crabbe stated.
Moreover, Crabbe emphasised that “the consequences of getting this decision right or wrong can add up to hundreds of thousands of pounds. This is why [AES International] encourages investors to think about and take advice early so they do not make a rushed, and potentially expensive, snap decision, which can happen when they find the property they want to buy.”
Aside from UK property taxation, other proposed tax changes in the Autumn Statement are on pension and retirement planning, passing pensions to beneficiaries, remittance-based changes to non-domiciled individuals, and income tax, among others.
To view AES International’s Summary of the proposed changes to UK property taxation, you can download it here for free.
For more information about AES International, please visit their website.
Rebecca Steele, AES International, http://aesinternational.com/, +971 4450 2517, [email protected]
Share this article