Prime property tax squeezes wealthy foreigners
June 26th 2015
Wealthy non-nationals are becoming an increasingly lucrative source of income for the UK government, as a tax on home ownership structures common among foreigners generated much higher revenues than last year. The annual tax on enveloped dwellings (Ated), which is levied on expensive residential properties owned by companies, raised £136m in April and May combined, up from £91m in the same two months last year. Corporate entities are widely used to hold UK properties owned by non-domiciled residents and foreigners to avoid falling into the country’s inheritance tax regime. Non-doms have often purchased homes through offshore companies to preserve their anonymity, said Mark Davies, of tax advisory firm Mark Davies & Associates. Although Ated was introduced in 2013 as a measure to deter individuals from avoiding stamp duty and inheritance tax by holding properties through corporate entities, Mr Davies said higher charges and lower thresholds show it has become a “penal” tax. The annual charge now stands at £23,350 for homes valued between £2m and £5m, rising to £218,200 for those in the highest bracket, above £20m.
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Prime property tax squeezes wealthy foreigners
June 26th 2015
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Wealthy non-nationals are becoming an increasingly lucrative source of income for the UK government, as a tax on home ownership structures common among foreigners generated much higher revenues than last year. The annual tax on enveloped dwellings (Ated), which is levied on expensive residential properties owned by companies, raised £136m in April and May combined, up from £91m in the same two months last year. Corporate entities are widely used to hold UK properties owned by non-domiciled residents and foreigners to avoid falling into the country’s inheritance tax regime. Non-doms have often purchased homes through offshore companies to preserve their anonymity, said Mark Davies, of tax advisory firm Mark Davies & Associates. Although Ated was introduced in 2013 as a measure to deter individuals from avoiding stamp duty and inheritance tax by holding properties through corporate entities, Mr Davies said higher charges and lower thresholds show it has become a “penal” tax. The annual charge now stands at £23,350 for homes valued between £2m and £5m, rising to £218,200 for those in the highest bracket, above £20m.
Prime property tax squeezes wealthy foreigners
June 26th 2015
Wealthy non-nationals are becoming an increasingly lucrative source of income for the UK government, as a tax on home ownership structures common among foreigners generated much higher revenues than last year. The annual tax on enveloped dwellings (Ated), which is levied on expensive residential properties owned by companies, raised £136m in April and May combined, up from £91m in the same two months last year. Corporate entities are widely used to hold UK properties owned by non-domiciled residents and foreigners to avoid falling into the country’s inheritance tax regime. Non-doms have often purchased homes through offshore companies to preserve their anonymity, said Mark Davies, of tax advisory firm Mark Davies & Associates. Although Ated was introduced in 2013 as a measure to deter individuals from avoiding stamp duty and inheritance tax by holding properties through corporate entities, Mr Davies said higher charges and lower thresholds show it has become a “penal” tax. The annual charge now stands at £23,350 for homes valued between £2m and £5m, rising to £218,200 for those in the highest bracket, above £20m.
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