Property Holding Companies

The use of limited liability companies and other offshore entities as vehicles for investing into real estate 'onshore' may provide significant advantages. Property Holding Companies have been used to mitigate various taxes and duties with respect to the purchase, sale and letting of properties, as well as providing an additional level of security and privacy between the client and the property.

Minerva administers a large number of companies holding UK Real Estate (private & commercial), the main advantages being:

  • The company owning the property may be sold / transferred without changing legal title of the property, thus not incurring Stamp Duty Land Tax and in some cases Capital Gains Tax which may be chargeable at rates up to 5% and 40% respectively
  • A company is not liable for inheritance tax which can mean a potential tax saving of up to 40% of the value of the property compared to owning the property as part of your personal estate
  • The company would pay Schedule A UK Income Tax at 20% on its rental income compared to up to 50% for a UK resident person
  • The company will be able to receive its rental income gross of UK income tax by joining the non-residents landlord scheme which also provides the opportunity to further reduce the Schedule A income tax liability by the use of certain deductible expenses and capital allowances
  • The offshore company provides a tax neutral platform for typically holding real estate with no further taxes payable in the offshore jurisdiction
  • The property would be registered in the company’s name at the Land Registry without any reference to the client
  • There are additional advantages with regards to VAT with respect to Commercial Property

The services that we may offer include:

  • The incorporation of the company
  • The provision of registered office, directors, company secretary and nominee shareholders for the Company
  • The preparation of annual accounts and the preparation and submission of annual tax returns with respect to the rental income earned by the company
  • The appointment and supervision of a local firm of lawyers to purchase / sell the property
  • The appointment and supervision of a local property management firm to manage the letting of the property