Should I use an offshore company for my UK property?

Should I use an offshore company for my UK property?

Manchester aprtment

In the past, international investors used offshore trusts, foundations or companies to hold UK property. These structures separate assets from local probate processes and allow estate planning across countries. That means they simplified how you pass property between family members and avoided some UK taxes.

How regulations have changed

Today, the rules have changed a lot. UK residential property in offshore companies now faces full Inheritance Tax. Properties worth over £500,000 that aren't rented may be subject to the Annual Tax on Enveloped Dwellings. Capital Gains Tax applies when you sell. And from 2022, offshore entities must publicly register their beneficial owners through the UK's Register of Overseas Entities. Because of this, using an offshore company is much more complicated and expensive than it used to be.

When offshore still makes sense

Despite tighter rules, offshore structures can still make sense for certain families. Large portfolios across multiple countries, or investors based in countries with restrictive inheritance laws, may benefit from well-designed offshore holding models. The key is not assuming that offshore automatically means privacy or tax savings – it needs clear goals, proper compliance and professional guidance.

Our approach

We work with legal and tax experts in various countries to find the best setup for you. Often, a UK trust or special purpose vehicle is simpler and saves more money. We start with your long-term goals, not tax shortcuts – before guiding you toward structures that give you control and long-term peace of mind.

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