Capital gains tax on UK property

antrobus

AndyGuil wrote: »

If the property is held through the entity they can allow clients to buy and sell property off the records. They are effectively a holding company. The land registry sees the company name and no one elses. It remains anonymous. ...

You just don't quite get it do you?

Here's a nice little London flat for £2m quid. Buy it in your own name and it will cost you £140,000 in SDLT. Buy through a company and you have to pay an extra £160,000 in SDLT plus you have to pay an extra £15,000 a year in AEDT. Which is quite a bit of extra wonga to shell out. It's the price you pay for not having to pay that future potential SDLT. So nobody cares how many times the property is bought and sold "off the books"; the property is still in the name of the company and you still have to pay the AEDT.

And once you're in the AEDT regime, the only way you can get out of it is by moving the property out of the company. Which will trigger the CGT charge. That's the Catch 22. Whichever way you play it; Gideon wins. It's really quite clever.

AndyGuil wrote: »

They don't seem to be making much from the tax so far...

Really? Got access to Treasury data have you?:)

Press comment suggests otherwise:-

the Treasury is pleased with the results

http://www.newstatesman.com/politics/2013/10/osbornes-plan-tax-foreign-property-owners-smart-politics-and-smart-economics

At some point, the Government will publish figures for tax revenues, specifically stamp duty, which show levels surpassing all expectations. Not only did introducing a swingeing 15 per cent recurring levy on properties held by off-shore companies drive plenty of buyers to switch to pay high levels of stamp duty, but it appears a good number of wealthy foreigners are more than happy to pay the charge, enriching the Exchequer still further.

http://blogs.telegraph.co.uk/news/benedictbrogan/100243393/londons-astonishing-boom-can-lift-the-whole-of-britain/

AndyGuil

The total figure they make from the tax is not high. It only applies to a tiny amount of properties. We don't know all the schemes that are available to avoid thisbtax. Most taxes are clearly avoided as we see reported many times. There are always loop holes. It is definitely not black and white. Trusts are going to be popular.

antrobus

AndyGuil wrote: »

The total figure they make from the tax is not high.....

How much is it then?

AndyGuil wrote: »

... It only applies to a tiny amount of properties.

Just those properties on which people are trying to avoid SDLT.

AndyGuil wrote: »

...We don't know all the schemes that are available to avoid thisbtax.

That's right, you don't know do you.

AndyGuil wrote: »

....Most taxes are clearly avoided as we see reported many times. There are always loop holes. It is definitely not black and white. Trusts are going to be popular.

You're just waffling in a desperate attempt to cover up your lack of understanding.:D

AndyGuil

That's great no one can or will ever avoid tax again. The rules are water tight.:beer:

antrobus

AndyGuil wrote: »

That's great no one can or will ever avoid tax again. The rules are water tight.:beer:

The great, the not-so-great, and indeed even the quite insignificant, will continue to avoid, evade, and mitigate tax until the sun turns supernova. Governments will try their best to stop them and keep the tax tills ringing. Sometimes their efforts succeed, sometimes they don't. It can be useful to understand the difference.:)