Practice guide: Corporate ownership of UK residential property

FA 2012 started the process of change to the taxation of residential properties in the UK. Further changes are proposed in Finance Bill 2013 as outlined in Ensuring the fair taxation of residential property transactions the consultation period for which ended on 23 August.

These changes were outlined by Robert Young in Tax Journal dated 7 September 2012 and in broad terms are:

• increased rate of SDLT on acquisition by companies of residential property over £2m;
• annual charge on the value of residential property over £2m held by companies;
• capital gains tax on the disposal of residential property over £2m (and shares in companies...