S&W The Pulse

In this episode, Ami Jack Head of National Tax and Susan Roller a Partner in our Private Client Tax team discuss offshore companies owning UK residential properties and key considerations you need to be aware of, including those arising as a result of the planned increase in corporation tax.Key discussion points to note in this episode:Offshore companies have been subject to a series of tax changes for the last 8 years and the corporation tax increase in April 2023 to 25% also affects all these companies.The new 25% rate applies to all non-resident companies regardless of the level of rental income – this is an increase from the current rate of 19% and will apply on any gains on sale.If you’ve got a UK residential rental property in a company that you are considering selling, think about exchanging contracts pre 1/4/23 so gain taxed at 19%. The Capital Gains Tax (CGT) will be based on market value at April 2015, which could be 20% gain on average.  The 7.8% indexation allowance (April 2015 to when stopped in