The Annual Residential Property Tax<\/strong><\/p>\n For overseas buyers who simply buy high value property through a corporate vehicle for their own use, a \u00a315,000 annual charge, called the Annual Residential Property Tax (ARPT), will apply to properties valued at \u00a32m – \u00a35m, a \u00a335,000pa charge for properties between \u00a35m and \u00a310m and a \u00a3140,000pa charge for properties worth over \u00a320m.<\/p>\n The Extension of Capital Gains Tax<\/strong><\/p>\n The Government will be publishing draft legislation in January regarding the extension of Capital Gains Tax (CGT) but there have been some welcome amendments to the original proposals.\u00a0\u00a0 Firstly, the same reliefs that apply to genuine commercial businesses for ARPT will apply, secondly the definition of non-natural persons will be the same as for the ARPT and lastly, only gains accrued after April 5th<\/sup>, 2013, will be chargeable.\u00a0 The Government will be continuing with its new CGT charge of 28% for non- resident, non-natural persons disposing of high value residential property.\u00a0 This will apply to the same individuals as the ARPT.<\/p>\n London<\/strong>\u2019s Landlords can Rest Easy<\/strong><\/p>\n The Government\u2019s announcement is a huge relief for overseas investors who own London buy-to-let property in corporate or similar structures.\u00a0 We believe the Government\u2019s original proposals would have had a detrimental effect on the private rented sector and we welcome the decision to exempt companies with genuine business purposes.\u00a0 Rightly, these amendments now mean ARPT and the extension of CGT will apply only to overseas investors who buy London property for their own use \u2013 these were always the Government\u2019s target.\u00a0 It won\u2019t now affect genuine business investment in UK residential property.<\/p>\n We\u2019re relieved the Government has recognised the contribution of the private rented sector towards the UK economy and this should ease concerns amongst overseas investors about the long term future of investment in UK residential property. \u00a0That means all our clients can rest assured they won\u2019t be affected by the changes – it\u2019s a clear indicator the Government recognises and encourages the role overseas investors play in the UK economy.<\/p>\n","protected":false},"excerpt":{"rendered":" We recently reported on the UK Government\u2019s proposed tax changes relating to high value UK residential property.\u00a0 The Government has now published its draft legislation for the Finance Bill 2013, confirming the proposals it made earlier this year.\u00a0 However, our clients will be relieved to know that the proposed changes should not affect them.<\/p>\n","protected":false},"author":7,"featured_media":142,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[443],"tags":[21,16,20],"class_list":["post-131","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlords","tag-annual-residential-property-tax","tag-capital-gains-tax","tag-uk-governments-proposed-tax-changes"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/comments?post=131"}],"version-history":[{"count":51,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/131\/revisions"}],"predecessor-version":[{"id":15526,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/131\/revisions\/15526"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media\/142"}],"wp:attachment":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media?parent=131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/categories?post=131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/tags?post=131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Property](\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2012\/12\/PROPOSED-PROPERTY-TAX-CHANGES.jpg\")
<\/a>The most important news for our clients is that, although the Government has confirmed that an annual charge will be introduced on properties valued at over \u00a32m bought by non-natural persons through a corporate structure, this won\u2019t affect companies with genuine commercial interests such as property rental companies<\/a>, buy-to-let investors and developers.\u00a0 For these companies, there will be reliefs and exemptions.\u00a0 This also applies to the punitive 15% Stamp Duty already introduced, and we hope that the final legislation will back date the exclusions from when they were initially introduced in March 2012.<\/p>\n