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Property investment: some recent developments

Kitty Swanson and Simon Rose (Mayer Brown) consider some important tax issues affecting investors in UK real estate.

Tax is fundamental to the success of any UK property investment structure whether as regards interest deductibility the ability to pay interest free of UK withholding tax to external lenders the recoverability of input VAT or the prospect of investors exiting their investment with as little ‘UK tax drag’ as possible.

Myriad tax-related considerations will usually apply which this article will not generally rehearse. Instead the following paragraphs will focus upon some key recent developments in this area and the market’s responses to them.

What is a UK property investment transaction?

A UK property investment transaction typically involves the acquisition of UK real estate with the intention of holding it for the medium to long term in order to achieve a return in the form...

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