Offshore loans, property trusts and limited companies
For non-UK domiciles purchasing property in the UK, an offshore trust in a lower tax jurisdiction such as Guernsey, Jersey, British Virgin Islands (BVI) or Gibraltar, can provide significant tax savings. Trusts can be structured onshore or offshore, depending on your tax status and the motivation for setting up the trust in the first instance.
An offshore mortgage may be more suitable for you if you are purchasing property in the UK but your main income is derived from outside the UK or you are not resident in the UK for tax purposes. An offshore mortgage is a more tax-efficient way of buying a property for the right sort of client.
Buying property via a limited company has become less attractive for some because of recent tax changes but it still has potential benefits, such as making it easier to pass down the generations. If you are looking to build a large property portfolio over the longer term, a company structure may also make sense. This is a highly complicated area so independent advice from specialists such as Anderson Harris is vital.
(Please note: Tax treatment is based on individual circumstances and may be subject to change in the future.)