United Kingdom

Details

  • Service: Tax, Personal Tax, Budget 2014
  • Industry: Real Estate
  • Type: Press release
  • Date: 19/03/2014

Budget 2014: Overseas UK property owners caught in tax net 

Further rules were introduced in the Budget today which will impact UK properties owned by overseas entities valued at between £500,000 and £2 million.  The Treasury said that this would affect 12,000 individuals.

Greg Limb, tax partner at KPMG, said: “For those owners who are already letting their properties or using them in a business, there should be no further taxes to pay – however, there will be an additional compliance and paperwork burden in the future. 


“Where this really hits though is individuals and companies who are keeping their properties empty.  They will now have a choice of paying an annual charge of up to £7,000 per property or renting the property out and paying tax on any rental profit. Whilst there are many non-tax reasons for holding a property in an offshore company, this may force many people to reappraise existing structures and use of the property.  There was a further sting in the tail within the proposals that will potentially see a stamp duty charge of 15% from midnight tonight.


“However, it remains too early to say whether this will help cure the blight of empty properties in the capital that has been much commented on and debated.  Estate agents will doubtless be hoping!”


Ends


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For further information please contact:

KPMG Press office
Tel:  +44 (0) 207 694 8773
Mark Hamilton, KPMG Corporate Communications
Mobile: 07785 337672
mark.hamilton@kpmg.co.uk


About KPMG:

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity an

 

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Mark Hamilton

Mark Hamilton

Senior PR Manager - Audit, People & Corporate Responsibility

KPMG in the UK

020 7694 2687

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