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Where Taxpayers and Advisers Meet

Transfer of land from offshore company

Posts: 1
Joined: Thu Sep 06, 2018 3:24 pm

Transfer of land from offshore company

Postby wymlen » Thu Sep 06, 2018 4:10 pm

My wife is non-UK tax resident or domiciled. She is the beneficial owner of an offshore company which owns land in UK since 1989. The intention is to dissolve the offshore company which requires registering the title in her name. The transfer would be a no value consideration and the land was also gifted to her company in 1989. Would SDLT and CGT be due, the land value is £300k approx. and was gifted to her in 1989.

Posts: 772
Joined: Fri May 16, 2014 3:47 pm

Re: Transfer of land from offshore company

Postby AGoodman » Wed Sep 26, 2018 2:44 pm

You don't say what type of land.

If the company is not UK tax resident then it may be liable to NRCGT if the land is residential. If not, there should not be any gains tax to pay on a distribution this year. This will be changing next year when NRCGT is extended to all UIK land.

There may not be SDLT on a transfer as a result of liquidation provided the company has no debt that might be considered deemed consideration.

There are numerous anti-avoidance provision that can complicate these situations so it would be sensible to take proper advice.

Posts: 7535
Joined: Wed Aug 06, 2008 3:25 pm

Re: Transfer of land from offshore company

Postby maths » Wed Sep 26, 2018 5:29 pm

SDLT should not be payable on a liquidation distribution of the company (or an in specie dividend). However, a distribution of the land subject to any debt will precipitate an SDLT charge based on the consideration (ie the debt amount) unless the debt is due from the company to the shareholder.

If the property is residential a NRCGT charge at 20% on any gain (ie post 6 April 2015) will arise on the liquidation

I assume that the shareholder is both non-UK domiciled and non-resident for UK tax purposes.

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