Property holding structures

Tax is a key consideration when selecting an appropriate structure for holding UK property, together with all relevant commercial and other legal considerations. The tax treatment of a particular structure should always be considered in conjunction with the following factors:

1. •

   the tax profiles of the ultimate owners—where they are resident, if they are companies or individuals etc, and

2. •

   whether the UK property is to be held as an investment or an item of trading stock

This sub-topic covers the tax treatment of the most common structures for holding UK real estate, including:

1. •

   corporate structures

2. •

   partnership structures

3. •

   offshore unauthorised property unit trust structures (eg JPUTs), and

4. •

   contractual joint ownership structures

The Practice Notes in this sub-topic focus primarily on the direct tax (ie corporation tax, income tax and CGT) treatment of these holding structures. In this overview, CGT means both capital gains tax and corporation tax on chargeable gains save where expressly specified. Where appropriate, the annual tax on enveloped dwellings (ATED) is discussed. For further details on ATED, see our ATED subtopic.

The indirect tax