of a discretionary trust created by the
individual.
The form of ownership which will suit each
individual investor will vary not only according
to his or her personal tax circumstances but
also, and often more importantly, according to
other factors such as privacy of ownership, or
any applicable fixed inheritance rights of heirs,
such as Sharia law or those of many European
and other civil law countries.
Tax considerations
Income tax
Income tax will be relevant if a UK property is
rented out, in which case the rental income
will have a UK source and will be taxable in
66
the UK, except to the extent of any allowable
expenditure. The tax rates and other specific
considerations (including issues such as
shadow directors and the receipt of benefits
in kind) may vary according to the structure
through which the property is held, and
advice will be needed accordingly.
Inheritance tax (IHT)
Even where an individual is dom iciled outside
the UK, inheritance tax will be applicable to
his or her UK situated assets. Prior to 2013 this
was easily avoided by owning the property
through an offshore company. However, with
the introduction of ATED and ATED-related
CGT (see below) this may not be the best
option. Furthermore, the UK Government
www.theaddressmagazine.com