BESPOKE BRIDGING LOAN

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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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