BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

OFFSHORE COMPANY

LOANS

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Wherever   possible,   overseas   buyers   should   consider   acquiring   UK   property   in   the   name   of   an   offshore   company   or   other   offshore   vehicle.   This   is obviously   subject   to   consideration   of   the   administration   and   running   costs   of   the   company   and   the   tax   implications.   A   small   number   of   specialist bridging companies are prepared to lend to Limited & Offshore Limited companies, SPVs, Trusts and LLPs. This   is   rapidly   becoming   a   more   viable   option   for   clients   wanting   to   add   to   their   portfolio.   It   is   generally   not   advisable   for   an   offshore   buyer   of   high value   property   to   purchase   in   the   name   of   an   individual,   not   least   of   all   because   it   has   become   very   expensive   to   transfer   a   property   into   the   name   of a company at a later stage. What exactly are the advantages of Offshore Company property loans? The   UK   and   Central   London   continue   to   be   viewed   by   overseas   investors   as   a   safe   long-term   investment   and   post   the   Brexit   referendum   high   stamp duty   costs   have   been   largely   offset   by   the   weakness   of   Sterling.   Indeed,   it   is   still   not   unusual   to   see   fierce   competition   between   overseas   buyers   for desirable, high value properties. The advantages of purchasing properties through an offshore vehicle are summarised below: A   property   can   be   sold   by   selling   the   shares   in   the   company   with   potentially   no   UK   Capital   Gains   Tax   (CGT)   or   Stamp   Duty   Land   Tax   (SDLT). There is no SDLT payable on shares in an offshore company. By   using   an   offshore   company   Inheritance   Tax   can   be   avoided.   If   the   property   is   in   the   name   of   an   individual,   then   on   their   death   IHT   is potentially payable on the net value of the property. If   an   investment   property   is   acquired   by   an   offshore   company   any   rental   income   will   remain   taxable   in   the   UK.   If   the   property   is   owned   by   an offshore   company   only   the   basic   rate   of   UK   Tax   (20%)   will   apply   regardless   of   the   level   of   income.   By   contrast   personal   ownership,   under   which banded UK income tax rates will apply up to 50%. No stamp duty land tax is payable by a buyer of the shares in the company. It   should   be   noted   that   the   above   assumes   that   the   beneficial   owners   of   the   company   are   not   UK   resident   or   domiciled   for   tax   purposes.   There   may be   capital   or   other   taxes   payable   in   the   jurisdiction   of   the   incorporation   of   the   company   concerned   and/or   in   the   country   in   which   the   beneficial owners   are   tax   resident.   The   acquisition   of   a   UK   property,   particularly   a   high   value   one,   should   be   considered   as   part   of   an   overall   tax   strategy   with appropriate advice. There   are   also   advantages   in   terms   of   confidentiality   when   selling   as   the   transaction   does   not   appear   on   any   public   register   in   the   UK.   Weighed against   this,   is   the   fact   that   a   sale   of   a   company   is   a   much   more   complex   process   than   selling   a   property   and   it   can   also   take   longer   and   be   more expensive in terms of legal and possibly accountancy fees. Once again advice should be sought. When   it   comes   to   simply   owning   a   property   most   wealthy   and   sophisticated   buyers   do   not   want   their   names   as   owners   publicly   available.   There   are security   and   general   confidentiality   reasons   for   this.   By   having   an   offshore   company   as   owner   someone   searching   the   Land   Registry   website   can   only see   the   name   of   the   company.   A   determined   enquirer   would   then   have   to   try   to   search   against   the   offshore   company   which   is   likely   to   be   difficult   and indeed,   depending   upon   the   jurisdiction   of   the   company   and   the   manner   in   which   it   is   set   up,   it   should   be   virtually   impossible   for   someone   to   find out details of the beneficial ownership. In    summary,    whilst    there    are    disadvantages    and    costs    to    acquiring    UK    property    through    offshore    loans    these    are,    on    balance,    substantially outweighed by the potential advantages. Still unsure and need to explore your options? Why not consult an expert? Central   Bridging   are   bridging   loan   specialists   with   a   great   track   record.   We   are   a   principal   lender   offering   a   range   of   loan   facilities   for   business   use from £250K to £2.5M over periods from 3 to 24 months. Our loans are secured on freehold property across England and Wales. Crucially   you   will   always   speak   to   a   decision   maker   who   will   take   time   to   understand   you   and   your   situation   and   unlike   some   of   the   bigger   banks   will then tailor a solution that best suits your needs rather than their own. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, Granary Wharf, Wharf Road, Burton on Trent, Staffordshire, DE14 1DU Tel: 03332 400 506   Email: enquiry@centralbridging.co.uk   Web: www.centralbridging.co.uk Central Bridging is a trading style of Central Bridging Loans Ltd. Registered in England & Wales | Company Registration Number 07728274. Central Bridging is not regulated by the Financial Conduct Authority (FCA). All loans arranged by Central Bridging are non regulated contracts as defined under The Financial Services and Markets (Regulated Activities) Order 2001 and the Financial Service and Markets Mortgage Credit Directive Order 2015. © Copyright Central Bridging Loans Limited Privacy Policy
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BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

Wherever    possible,    overseas    buyers    should    consider    acquiring    UK property    in    the    name    of    an    offshore    company    or    other    offshore vehicle.      This      is      obviously      subject      to      consideration      of      the administration    and    running    costs    of    the    company    and    the    tax implications.    A    small    number    of    specialist    bridging    companies    are prepared    to    lend    to    Limited    &    Offshore    Limited    companies,    SPVs, Trusts and LLPs. This   is   rapidly   becoming   a   more   viable   option   for   clients   wanting   to add   to   their   portfolio.   It   is   generally   not   advisable   for   an   offshore buyer   of   high   value   property   to   purchase   in   the   name   of   an   individual, not   least   of   all   because   it   has   become   very   expensive   to   transfer   a property   into   the   name   of   a   company   at   a   later   stage.   What   exactly are the advantages of Offshore Company property loans? The    UK    and    Central    London    continue    to    be    viewed    by    overseas investors     as     a     safe     long-term     investment     and     post     the     Brexit referendum   high   stamp   duty   costs   have   been   largely   offset   by   the weakness    of    Sterling.    Indeed,    it    is    still    not    unusual    to    see    fierce competition     between     overseas     buyers     for     desirable,     high     value properties. The   advantages   of   purchasing   properties   through   an   offshore   vehicle are summarised below: A   property   can   be   sold   by   selling   the   shares   in   the   company with   potentially   no   UK   Capital   Gains   Tax   (CGT)   or   Stamp   Duty Land    Tax    (SDLT).    There    is    no    SDLT    payable    on    shares    in    an offshore company. By   using   an   offshore   company   Inheritance   Tax   can   be   avoided. If   the   property   is   in   the   name   of   an   individual,   then   on   their death    IHT    is    potentially    payable    on    the    net    value    of    the property. If   an   investment   property   is   acquired   by   an   offshore   company any   rental   income   will   remain   taxable   in   the   UK.   If   the   property is   owned   by   an   offshore   company   only   the   basic   rate   of   UK   Tax (20%)   will   apply   regardless   of   the   level   of   income.   By   contrast personal   ownership,   under   which   banded   UK   income   tax   rates will apply up to 50%. No   stamp   duty   land   tax   is   payable   by   a   buyer   of   the   shares   in the company. It   should   be   noted   that   the   above   assumes   that   the   beneficial   owners of   the   company   are   not   UK   resident   or   domiciled   for   tax   purposes. There   may   be   capital   or   other   taxes   payable   in   the   jurisdiction   of   the incorporation    of    the    company    concerned    and/or    in    the    country    in which   the   beneficial   owners   are   tax   resident.   The   acquisition   of   a   UK property,   particularly   a   high   value   one,   should   be   considered   as   part of an overall tax strategy with appropriate advice. There   are   also   advantages   in   terms   of   confidentiality   when   selling   as the    transaction    does    not    appear    on    any    public    register    in    the    UK. Weighed   against   this,   is   the   fact   that   a   sale   of   a   company   is   a   much more   complex   process   than   selling   a   property   and   it   can   also   take longer    and    be    more    expensive    in    terms    of    legal    and    possibly accountancy fees. Once again advice should be sought. When    it    comes    to    simply    owning    a    property    most    wealthy    and sophisticated    buyers    do    not    want    their    names    as    owners    publicly available.   There   are   security   and   general   confidentiality   reasons   for this.   By   having   an   offshore   company   as   owner   someone   searching   the Land    Registry    website    can    only    see    the    name    of    the    company.    A determined   enquirer   would   then   have   to   try   to   search   against   the offshore   company   which   is   likely   to   be   difficult   and   indeed,   depending upon   the   jurisdiction   of   the   company   and   the   manner   in   which   it   is set    up,    it    should    be    virtually    impossible    for    someone    to    find    out details of the beneficial ownership. In   summary,   whilst   there   are   disadvantages   and   costs   to   acquiring   UK property   through   offshore   loans   these   are,   on   balance,   substantially outweighed by the potential advantages. Still   unsure   and   need   to   explore   your   options?   Why   not   consult   an expert? Central   Bridging   are   bridging   loan   specialists   with   a   great   track   record. We    are    a    principal    lender    offering    a    range    of    loan    facilities    for business   use   from   £250K   to   £2.5M   over   periods   from   3   to   24   months. Our    loans    are    secured    on    freehold    property    across    England    and Wales. Crucially   you   will   always   speak   to   a   decision   maker   who   will   take   time to   understand   you   and   your   situation   and   unlike   some   of   the   bigger banks   will   then   tailor   a   solution   that   best   suits   your   needs   rather   than their own. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, Granary Wharf, Wharf Road, Burton on Trent, Staffordshire, DE14 1DU Tel: 03332 400 506  Email: enquiry@centralbridging.co.uk Web: www.centralbridging.co.uk Central Bridging is a trading style of Central Bridging Loans Ltd. Registered in England & Wales | Company Registration Number 07728274. Central Bridging is not regulated by the Financial Conduct Authority (FCA). All loans arranged by Central Bridging are non regulated contracts as defined under The Financial Services and Markets (Regulated Activities) Order 2001 and the Financial Service and Markets Mortgage Credit Directive Order 2015. © Copyright Central Bridging Loans Limited Privacy Policy
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