The Government’s Finance Bill has finally been published, confirming a number of proposals which were announced earlier this year, which will be introduced in April 2013.
* The Annual Residential Property Tax will mean that non-natural persons owning a dwelling worth more than £2m will have to pay between £15,000 and £140,000 per year, depending on which valuation band the property falls into. However, there are reliefs for property rental businesses and trading companies.
* Capital gains tax (CGT) at 28 per cent will also apply to non-resident non-natural persons who sell a dwelling worth more than £2m after April 2013. However, this will not be backdated and will only apply to gains arising after April.
* There will be new reliefs from the 15 per cent Stamp Duty Land Tax rate introduced in March 2012 for property development and investment businesses. However, these won’t be brought in until July 2013.
So what does this mean for clients? If you are affected by any of these proposals, it is important to seek specialist advice rather than automatically assume that ‘de-enveloping’, or dismantling your existing structure, is the only option. If the company wrapper does need to be dismantled, it could trigger a tax charge if not done correctly.
The good news is that if extra borrowing is required, rates are at all-time lows. The private banks are keen to lend to clients with complex requirements with a strong asset base. Contact Anderson Harris for more information.