The latest Royal Institution of Chartered Surveyors (RICS) UK Commercial Market Survey 2016 shows demand from overseas buyers was up notably across all areas of the market in the fourth quarter of 2016. Demand increased for a second consecutive quarter with the growth in enquiries gaining momentum. 21 per cent more respondents saw a rise in demand in the fourth quarter, up from 9 per cent more in the third quarter.
Foreign investment also rebounded as the sharp decline in sterling since June proved enticing for foreign investors. Demand from international investors is expected to support British commercial property this year, despite Brexit.
In a separate report, data from HM Revenue & Customs (HMRC) shows that property investors are using ever more complex methods to reduce their tax liabilities.
The figures show a rise in the number of investors placing taxable gains from buy-to-let property sales in enterprise investment schemes, which can entitle you to an income tax rebate of 30 per cent of what was put in. This should turn out to be enough to pay the 28 per cent tax on the gains from the sale. The trouble is investments need to remain in place for three years and they are often risky, but losses can be used to reduce taxable or income elsewhere. When the investments are sold the original Capital Gains Tax liability resurfaces and needs to be paid.
At Beavis Morgan, we have extensive experience in advising individuals and businesses on all aspects of the property market. We act for a broad range of property investors and developers who actively need advice on how to best structure their property deals, both to ring-fence and protect their property assets, as well as to minimise the tax arising from their business operations.
Whether you are looking to save on income tax, capital gains tax, inheritance tax, or all three, there are various options available to you, such as an investment in a portfolio of EIS and SEIS shares which is well worth considering, as long as you are fully aware of the risks.
We also offer specialist services to identify business opportunities for overseas investors looking to enter the UK property and business market – and we provide a comprehensive range of professional services to help you make the most of your investment in the UK.
For further information contact Steve Govey or your usual Beavis Morgan Partner.
Further reading:
EIS – A Legal & Ethical Tax Haven
CBRE Outlook: UK Property will perform under pressure in 2017