(MENAFN- Arab Times) Ahli United Bank "Al Motahid"recently completed briefing their clientele onthe new changes in the UK property taxation law which will come into effect in April 2013. The briefing comes as a follow up on the first session held by Ahli United Bank in May 2012 and the latest session held in December following the announcement of UK government draft legislation published on Dec 11, 2012. These changes impact most owners of UK residential property in excess of £2 million owned through offshore companies, although some reliefs are available, eg. If the property is rented to third parties.
Offshore structures have traditionally been used to hold UK property for succession planning and tax efficiency, for non UK residents to avoid UK Inheritance Tax currently charged at 40% on individual estates valued in excess of £325,000.
However under the new law, an annual residential property tax ("ARPT") will be introduced on residential properties valued in excess of £2 million held in offshore companies. UK capital gains tax will also be imposed on any sale of such a property under offshore company, on the increase in value of the property between the April 6, 2013 and the date of sale. Lastly, any purchase of a UK residential property valued over £2 million by an offshore company from the 21st March 2012 will be charged to UK stamp duty land tax at a rate of 15%. Although this rate is reducing to 7% from July 2013 for some residential investment property. At the recent session, AUB customers with existing property investments in the UK benefited from one on one discussion with top consultant on Estate Management David Preston, Piers Master from Charles Russell LLP a full service law firm, and Head of Fiduciary services Duncan Taylor from the UK.
Through these meetings, AUB customers were provided an insight into the extent of the new tax laws and its corresponding impact on their existing investments. With each client's situation being unique, individual meetings were held with the consultants who provided tailored advice and restructure proposals based on their circumstances.
AUB has also held training sessions for it relationship managers on the new rules about UK tax residence which are being introduced from April 2013.The rules are good news for Kuwaitis with limited links to the UK, (for example, a holiday home) and are likely to mean they can spend 4 months per year in the UK rather than three months without becoming UK tax resident.
As a result of AUBs proactive endeavors to ensure exclusive customer services and through the various consultations organized, AUB customers have already started making the necessary arrangements to adhere to the new UK taxation regulations and to maximize on the benefits achievable from the said changes. Medhat Tawfik , the Group Head Private Banking & Wealth Management who organized the event emphasized. "We are pleased to inform that our customers have responded positively to the new property tax laws and continue to be assisted by our team of professionals guiding them in therestructuring possibilities and recommendations.
We at Ahli United Bank continuously strive to ensure our customers are regularly updated on the latest developments on rules and regulation that could directly or indirectly impact their assets and investments. AUB customers can rest in the comfort that their interests with the bank are proactively monitored and well protected at all times." Â
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